Commentary

Breaking Down the Employment Report and the Market’s Reaction

Today the US employment report for April was released and it took the markets by surprise. Estimates were for net job gains of 1 million. Instead, the US economy added 218K private sector jobs. This compares to 708K private sector jobs in March. 

Commentary

Why Rates Could Still Drift Lower, But Will Ultimately Go Higher

10 year Treasury rates peaked at the end of March at 1.74% after having risen from low of just 0.56% back in the summer of 2020. Now, the rate stands at 1.57% even as economic data continues to come in smoking hot and policy remains incredibly accommodative.

Commentary

Reflation and Rotation

This is our Q1 2021 slide presentation of our quarterly strategy report.

Commentary

Spotlight LVMH: Bernard Arnault’s Luxury Empire

LVMH Moët Hennessy Louis Vuitton is a leading global luxury brands group.

Commentary

Spotlight DeNA: Embracing the User’s Point of View

Pronounced “D-N-A,” this Knowledge Leader was founded in 1999 by three Tokyo entrepreneurs seeking to establish an online auction site.

Commentary

Spotlight BHP: Embracing Technology to Clean Up Mining

Headquartered in Melbourne, Australia, BHP is the world’s No. 1 mining company.

Commentary

Spotlight Groupe Bruxelles Lambert: Champion of Digital Transformation

Belgian holding company Groupe Bruxelles Lambert invests in European industry leaders with two key strategies in place.

Commentary

Spotlight South32: A Bias Toward Base Metals

Australian metals miner South32 is a 2015 BHP Billiton spinoff named to reflect the southern latitude where most of its assets are located.

Commentary

Spotlight Investor AB: Best-in-Class Begins with R&D and Sustainability

Sweden’s Investor AB was founded in 1916 by the Wallenberg family with the aim of making long-term investments in high-quality global companies, a business philosophy it has maintained through booms, depressions, recessions, and global trends.

Commentary

Spotlight AngloAmerican: Sustainable Innovation Via Safer, Smarter Mines

AngloAmerican was founded in 1917 by Ernest Oppenheimer, who moved from Germany to Johannesburg, South Africa, and secured financial backing from J.P. Morgan to start a gold mining business.

Commentary

Inflation Here, There and Everywhere

What a week for price data! We have been writing about the possibility of higher inflation for months now, most recently here. We have also highlighted the most likely assets to benefit from higher inflation like copper, oil and energy stocks.

Commentary

There is An Alternative to Crazy Expensive Tech Stocks, We Just Need to Remove the Kaleidoscope Glasses

To say the market is bubblelicious is a bit of an understatement given that retail “investment” in call options and penny stocks is quite literally off the charts, dwarfing numbers we saw in 1998-2000.

Commentary

Productivity, an Additional Case for Homebuilders

There are a few ways to measure productivity. One simple way to measure productivity at the company level is to calculate sales per employee. Higher sales for the same number of employees obviously means each employee is pulling more weight. Profits are a byproduct.

Commentary

Party Like Its 1999

In this Q4 2020 slide presentation of our quarterly strategy report, we discuss: Bob Farrell’s Rules for Trading (#5 and #7 especially resonate with us right now). What the retail trading frenzy, recent IPOs and speculation can tell us...

Commentary

Get Ready for Services Prices to Accelerate Higher

We’re going to keep this post short and sweet because the charts speak for themselves. Today, preliminary Markit PMIs were released for January. Headline numbers ticked up, which is great and shows a continued expansion into the new year.