Showing posts from November, 2020

Small Talk | November 9 to November 13, 2020

At the “top-down” level the week past was a wild one with investors jumping back into “value” stocks in a move triggered by positive COVID-19 vaccine developments. Of course, what the market uses as a proxy for “value” is stocks priced on low multiples of their earnings or book value relative to the market - the data above shows how such stocks enjoyed a great resurgence during the week. But whether these stocks are good value (or good buying) is another question altogether. Benchmark Indices | November 9  to November 13 Source: Sentieo,, Equitable Investors Market’s Best & Worst of the Week - from our “FIT” Index Chart of the Week Long-Short Momentum Factor - Excess Daily Return Source: OSAM Research, FactorInvestor This is an excerpt from the weekly Small Talk update for clients of Equitable Investors.

10k Words - November 2020

Apparently , Confucius didn’t say “One Picture is Worth Ten Thousand Words” after all. It was an advertisement in a 1920s trade journal for the use of images in advertisements on the sides of streetcars. Even without the credibility of Confucius behind it, we think this saying has merit. Each month we share a few charts or images we consider noteworthy.  Running with a US focus, TheDailyShot looks at how individual investors are fuelling trade in lowly-priced stocks (in dollar pricing, not valuation multiple), with small caps back in favour according to TradingView and TheDailyShot. BAML shows the market is reacting the opposite way around to tech sector earning surprises, while Bloomberg gives us a look at US EPS growth by sector. Google shows us how retail and recreation foot traffic has been impacted, via WSJ, while Bloomberg and SentimenTrader update us on low and sub-zero bond yields. Finally, we couldn't completely avoid the US Presidential election so WSJ shows us the declin


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