Talking to the Manager

Talking to the Manager

  For this week’s featured indicator, we explore the Purchasing Managers’ Index (PMI) and how it can be used to determine trends in the stock market. But first, what is the Purchasing Managers’ Index? Essentially, it’s a measure of the strength of the economy....
The Price of Opportunity

The Price of Opportunity

  As investors, we’re constantly looking for ways to maximize our returns while minimizing risk. This often means we’re making an allocation decision between a safe investment, like bonds, and a riskier investment, like stocks. To understand why one would choose...
The Past and the Future

The Past and the Future

  There are many ways to measure the valuation of something like the stock market. Some people like to look at past earnings; others look at future expected earnings. There is no “right” answer here. As they say, valuation is in the eye of the beholder. But we’ve...
Countercurrents

Countercurrents

  Usually, when people think about money flowing into the stock market, they associate it with positive returns. However, as this week’s featured indicator shows, that isn’t always the case for exchange-traded products (ETFs). Specifically, asset flows into...
Beta is the New Alpha

Beta is the New Alpha

  Relative strength is a powerful tool used to model stock market risk. It measures the performance of a security or group of securities to another group of securities to determine outperformance. For example, we like to look at the relative strength of low and...
Covering the Spread

Covering the Spread

  The idea behind this week’s indicator is that corporate bond spreads can be used to anticipate changes in stock market earnings. This is because, historically, widening spreads are associated with economic weakness and poor earnings growth rates, while...