Making a Profit

Making a Profit

  The primary goal of any business is to make a profit; or, at the very least, profits validate a business’s commercial endeavors.  So, for this week’s chart, we show the profit margin of S&P 500 companies over the past 50 years. As you can see on the far...
Excess Liquidity

Excess Liquidity

  The one thing made apparent last year is that liquidity matters to the stock market.  By liquidity, we mean the amount of available money sloshing around the economy; when it’s excessive, it tends to find its way into financial assets—like stocks. One of the...
Stock Exchange Tug of War

Stock Exchange Tug of War

  I like to think of this week’s featured indicator as a tug of war between the two major stock exchanges in North America: the Nasdaq and the New York Stock Exchange (NYSE).  The relative differences between these two exchanges create a unique opportunity—which...
The Harder You Fall

The Harder You Fall

  Our good old friend, the VIX Index, is the focus of our featured indicator this week.  But what is the VIX Index, you might ask? It’s a real-time market index that uses option pricing on the S&P 500 Index to determine what market participants think...
Synchronized Swimming

Synchronized Swimming

  The one sport in the Olympics that never ceases to amaze me when I see it is synchronized swimming, also known as water ballet. The way the athletes bob and weave through the water so effortlessly is pretty astonishing. I think it’s one of the most underrated...
Against the Grain

Against the Grain

  When we model intermediate-term stock market risk, we break up the model into three major categories: Price Movements, Investor Sentiment, and the Economic Environment. Each of these three major categories is comprised of six sub-composites each (for a total of...