Investing

Inversion

Lots of concern in the media and world of academia about the flattening yield curve lately. The WSJ has a great article today putting the current slope of the yield curve in perspective. Basically, the yield curve has historically inverted 6 months to 2 years before the beginning of a recession. Everyone is clearly on …

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Investing

Fear Index

The CNN Fear & Greed Index was highlighted this morning in one of the research publications I consume. I discussed sentiment in a post last week and I thought highlighting the index would be a good follow up to that post. CNN’s index is driven by seven indicators that include momentum, breadth, put-call ratio and …

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Economics Investing

Sentiment

Sentiment is one of the main drivers of stock prices in the short, medium and long-terms. Understanding sentiment and how it contributes to stock price movements and returns is imperative for all would be investors. Short-term sentiment is what drives the action in stock prices day in and day out. Think of the recent negative …

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Investing

Expected Returns

As we officially begin earnings season in the US this week, we examined expected returns across asset classes and regions of the world. Not surprisingly, 10-year expected returns for many US based investments are expected to be weak relative to other regions of the world. Emerging markets appear quite attractive on a relative return basis.

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