It was generally a quiet day, with no macro news and equities range-bound, seemingly spooked by the ongoing verbal war between Trump and Jeff Bezos, where first in a tweet then a White House press conference, the president warned that US taxpayers will no longer subsidize Amazon “by the billions.” And, as has been the…
Wall Street managed to squeeze out the Spotify IPO today at a high price that declined steadily through the trading day. But the wiseguys achieved the relatively calm market that was required to bring this ‘direct IPO’ out. Stocks had a wobbly start with an upward bias towards the end of the day, finishing slightly…
Market Cap to GDP is a long-term valuation indicator that has become popular in recent years, thanks to Warren Buffett. Back in 2001, he remarked in a Fortune Magazine interview that “it is probably the best single measure of where valuations stand at any given moment.” The four valuation indicators we track in our monthly valuation overview offer a…
With the exception of the SENSEX, all of core Asia opened in negative territory over concerns surrounding the US/China dispute. Although major US indices had lost over 3% intraday they did show remarkable resilience by the close gaining over 1% in the final 45 minutes of trading. It was this that provided the much needed…
As far as rebound efforts go, Tuesday’s bullishness wasn’t exactly what the optimists wanted to see. The gain didn’t undo all of Monday’s damage, and the advance the market was able to muster was a low-volume effort. Generally speaking, for a move to have any follow-through, it needs more – not less – participants. In…
The 180-day lockup period for Switch (SWCH) ends on April 16, 2018. When this six-month period concludes, the company’s pre-IPO shareholders and insiders will have the ability to sell large blocks of currently restricted shares. The potential for an increase in the volume of shares traded on the secondary market could negatively impact the stock price…
Democracies will increasingly have to choose between raising wages and redistributing income or maintaining free trade and capital flows. Because they are likely to choose the former, the world may face a long-term reversal of globalization. Investment-driven growth can broadly occur in the form of one of two models, each with a different way of…
Quick take: At the end of March the inflation-adjusted S&P 500 index price was 112% above its long-term trend, down from 114% the previous month. About the only certainty in the stock market is that, over the long haul, over performance turns into underperformance and vice versa. Is there a pattern to this movement? Let’s apply…
Q1 Wrap Up The 1st quarter saw a return of volatility,ending a 9 quarter win streak. Most asset classes finished lower for the quarter, led by the aggregate bond index. Emerging markets and small caps finished positive. Diversification works over time, that much we do know. However, that doesn’t mean it works every day, month,…
In this video we run through the weekly email newsletter “The Top 5 Charts of the Week” and add a bit of extra comments and context. In this week’s edition we look at the astonishing rise in leverage in the stock market, we then see how institutional investors appear to be “buying the dip” based…
