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...
Hot Commodities

Hot Commodities

  This week’s featured indicator uses the Reuters-CRB Continuous Commodity Index (CCI) to measure inflationary pressures and how that affects stock prices. The CCI represents the average price of 17 commodities. It includes many of the major commodities we are...
It’s All Relative

It’s All Relative

  For this week’s indicator, we feature a chart showing the relative valuation of stock dividends and Treasury bond yields. The idea behind the indicator is that stocks and bonds compete for investor dollars. So by comparing their yields, we can get a sense of...