by NelsonCorp Wealth Management | May 5, 2022 | Indicator Insights
For this week’s indicator, we focus on nonfarm unit labor costs. The biggest expense for most businesses is labor. And one way to measure the cost of labor is by looking at unit labor costs, or how much a firm pays its workers to produce one unit of output. In...
by NelsonCorp Wealth Management | Apr 28, 2022 | Indicator Insights
Last week, I discussed this idea that short-term interest rates are surging, putting pressure on stocks. So, this week, I want to show the specific indicator that we use to measure short-term interest rate momentum, or what I’ll call T-Bill Yield Momentum. A...
by NelsonCorp Wealth Management | Apr 21, 2022 | Indicator Insights
We’ve recently talked about this idea of participation—or lack thereof—in the stock market. One way to measure participation is to look at a stock index and calculate what percentage of the individual stocks are performing well. When this number is high, we say...
by NelsonCorp Wealth Management | Apr 14, 2022 | Indicator Insights
We have found that interest rates tend to call the tune of the stock market. In particular, the stock market tends to get stressed out when interest rates rise rapidly. Why? One reason is that bond yields (i.e., interest rates) compete with stock dividend...
by NelsonCorp Wealth Management | Apr 7, 2022 | Indicator Insights
This week’s featured indicator aims to stay in harmony with the stock market’s long-term trend. To do this, the indicator first calculates the 200-day moving average of the MSCI World stock market index. The MSCI World Index (priced in U.S. dollars)...
by NelsonCorp Wealth Management | Mar 31, 2022 | Indicator Insights
The stock market runs on money. It prefers an environment in which liquidity is readily available and banks are flush with cash. So naturally, we look to the nation’s central bank, the Federal Reserve, for clues on liquidity. The Federal Reserve is primarily...
