A Case Study In Behavioral Finance

Below is a synopsis of this investment report: Behavioral Finance is a field of study that combines psychology, economics, and finance to provide an explanation for why investors make irrational financial decisions. Several market pundits continue to fear over a possible correction in
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The Predictive Nature Of Equities

Below is a synopsis of this investment report: It is a common belief that the Markets reflect the economy 3, 6, 9 or even 12 months out into the future.  This means that investors are attempting to incorporate their market predictions into their investment decisions. Paul Samuelson, o
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Deal Activity Is On Fire

Below is a synopsis of this investment report: Companies tend to grow organically by building new products/services internally, or they can grow by buying existing companies that already have proven products/services. The value of deal activity in 2014 has already topped $1 trillion w
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How Can Failure Be A Good Thing?

Below is a synopsis of this investment report: Late last week, China experienced its first corporate bond default as the solar panel maker, Chaori Solar, failed to make an interest payment.  Although defaults are commonplace in the U.S., China’s local governments have historical
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Is A Santa Claus Rally Looming?

Below is a synopsis of this investment report: A “Santa Claus” rally is used to describe the phenomenon of equity markets trending upward during late December. Explanations for this repeated behavior include tax considerations, lower liquidity around the holidays, and buyi
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U.S. Manufacturing – The Unsung Hero

Below is a synopsis of this investment report: The data suggest that the U.S. has experienced a rise in exports since 2005, and we feel that this is just the beginning of a long secular trend to bring manufacturing back to the U.S. The main driver of resurgence in domestic manufacturi
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A Subtle But Crucial Data Point

Below is a synopsis of this investment report: A key component to our secular bull thesis on equities is the overall strength and direction of the U.S. economy. As third quarter earnings wrap up, small cap stocks have significantly outperformed large cap stocks on the back of solid ea
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A Tale Of Two Cities

Below is a synopsis of this investment report: Consumer spending drives 70% of our economy, yet it’s shaping up to be a “Tale of Two Cities.” High-income earners are experiencing several tailwinds as home values and equity portfolios continue to rise, while low-incom
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Kicking The Can Down The Road

Below is a synopsis of this investment report: Crossing the debt ceiling has been averted, and the government shutdown is over… For now. Now that our government has “kicked the can down the road” until February, we expect the media will shift its focus back to the po
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Tweeter vs. Twitter

Below is a synopsis of this investment report: Tweeter Home Entertainment saw its stock price surge last Friday as demand for the stock of this bankrupt company increased seven-fold. Twitter’s initial public offering (IPO) is the most anticipated IPO of 2013, and last Thursday t
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