April 8, 2016
Technical analysis enables speculators to make future market predictions based solely upon a charted historical past; the actions of the market are studied as opposed to the underlying fundamentals of a company. Analysts have studied these sorts of charts for years and in the process discovered trends that are believed to support specific future behavior. One of these trends is explored in this week’s chart as it applies to the market’s preference of style: value vs. growth.
April 1, 2016
This week’s Chart of the Week examines the aftermath of three recent corporate scandals.
March 24, 2016
Activist hedge fund managers seek to outperform the equity markets over a market cycle by first purchasing a large amount of shares in publicly traded companies and then pushing these companies’ management teams to alter their approaches in an effort to unlock shareholder value. Some common practices include share buybacks, spinoffs, and strategic sales.
March 17, 2016
Following the recession, dividends and stock repurchases had a significant run, growing about 28% per year, reaching a new record of $241 billion in March 2014. While dividends continue to grow, buybacks have fallen in the last 18 months, leaving the combined total mostly flat. Not surprisingly, the market has also been relatively flat over the last year and a half.
March 9, 2016
Currencies are a popular topic in investment circles today, as their impact on total returns can be meaningful for investors. While many investment funds do not hedge currency exposure at the portfolio level due to the costs involved and the expectation of mean reversion over time, certain market participants are very active in the foreign exchange markets and seek to capitalize on price movements among currencies, which can be volatile in the short-term.
March 4, 2016
With U.S. equities posting their worst start to the year since 2009, opinions surrounding the path that equity markets will take during 2016 vary substantially. February saw a return to positive performance, yet equities remain in negative territory year-to-date.
February 24, 2016
During election seasons we are frequently asked about what will happen to the market if a particular candidate or party wins, or whether certain years of the presidential cycle are better for investors.
February 19, 2016
Given the recent drops in oil and U.S. equity prices, many have concluded that the significant decline in oil prices has driven down the stock market. Indeed, from the onset of oil's sharp dip, correlation between the two daily returns has greatly increased to about 45% on a 6-month rolling basis.
February 12, 2016
MLPs recorded their second worst year of performance in 2015 (-32.6%), reaching levels not seen since the financial crisis when the Alerian MLP Index fell 36.8% in 2008. Performance in 2015 can be attributed to the following factors...
February 4, 2016
The combination of rising high yield spreads and falling equity markets has led many investors to question if the U.S. is headed for a recession. This week’s chart examines the probability of a recession using the yield curve as a leading indicator of future economic activity.