Nov 25, 2014 | Uncategorized
A number of macroeconomic events are bringing equities to a strong year-end close. The most important is American GDP growth, which was expected to rise by 3.3% in the third quarter. This number was revised upwards on Tuesday as the BEA saw “positive contributions...
Nov 20, 2014 | Uncategorized
Target (TGT) is one of the largest retail specialists, although it is by no means the biggest (WMT has a market cap 6 times bigger than Target’s). Its TTM P/E ratio remained in the teens for most of the last few years, rising steadily in 2014 until it spiked over 20...
Nov 18, 2014 | Uncategorized
Japan stunned investors with news that its GDP fell in the third quarter, the second quarter of contraction in a row that some say is the beginning of a recession. Annualized growth for the country is at -1.6% for now, and many economists believe that rising prices is...
Nov 14, 2014 | Uncategorized
Fundamental investors cannot ignore macroeconomic conditions, although macro trends cannot always guarantee the generation of alpha. Knowing the macro context can help portfolio allocations and prepare investments for systemic risks, which is why the larger economic...
Nov 13, 2014 | Uncategorized
The S&P 500 (SPY) had a sharp pullback in the middle of October mostly on market fears that the end of the Federal Reserve’s quantitative easing program would dry up liquidity and cause stocks to fall. There was good reason to fear this; SPY has fallen at the end...
