An Immediate Risk Measure

Volatility and correlation are history. In fact this is a consequence of their definitions.  The calculation of volatility and correlation – the preeminent measures of risk – requires multiple observations.  Quite a few periods are needed if the resulting estimates are to be relied upon as robust.   Because of this, volatility and correlation are not Read more […]

Index of Leading Indicators Kicks-Off the Week

The yield on the 10-year Treasury as measured by the S&P/BGCantor Current 10 Year U.S. Treasury Index suddenly moved higher to 2.78% from the previous day’s 2.64%.  Thursday’s upward movement before the Good Friday Holiday was a result of negotiations over the Ukraine crisis possibly resulting in an accord to defuse the conflict. Yields in Read more […]

Housing Looking for Good Old Days

Rising Home Prices are boosting property taxes while mortgage lenders may be getting more generous. Bloomberg reports that property tax collections are rising at the fastest pace since the financial crisis with gains spread across the country. Among cities cited as enjoying renewed revenue gains were San Jose CA, Nashville TN, Houston TX and Washington Read more […]

Internet Intercedes in the Market

The last month has been marked with worries that the stock market is about to (finally) have a correction and drop some 10% or more.  While it is impossible to tell if, or when, this might happen; a few numbers may explain some of the recent action. Stocks were seized with a bit of mania Read more […]

What’s the Canadian Preferred Market Made Of?

Shift in the Makeup of the Preferred Market As we noted in an earlier post, the Canadian preferred share market has undergone a significant expansion over the past five years, approximately doubling in market size.  In addition to the growth of the market, the Canadian preferred market has seen a shift from most outstanding preferreds Read more […]

Right Conclusion (maybe), Wrong Reason (definitely)

This morning’s Wall Street Journal joined (actually, re-enlisted in) the chorus of those arguing that 2014 would be a time for stock pickers to “shine.”  The lynchpin of the Journal‘s case will be familiar to advocates of a “stock-picker’s market.”  That argument is that since correlations in the U.S. equity market are declining (perhaps as Read more […]

Retail Sales Hop Before the Easter Weekend

Treasuries closed the week returning 1.02% as measured by the S&P/BGCantor Current 10 Year U.S. Treasury Bond Index.  Last week’s return was the strongest weekly return since the flight to safety trade driven by Ukraine / Russia news from the week of March 14th, which remains the largest weekly gain for the year. This week Read more […]

Introduction to Preferred Shares in Canada

What are Preferreds? Preferred shares are hybrid equity securities, with characteristics that lie between the traditional fixed income and equity asset classes.  Like common shares, preferred shares represent ownership in a company and are listed as equity on the balance sheet; the ownership isn’t entirely the same though.  Preferreds have preferential rights to dividend payments Read more […]

S&P 5-YEAR DIVIDEND SNAPSHOT (and know when your paycheck comes in)

March marked the fifth anniversary from the Bear market low. Dividends have not only recovered from their bottom, but are setting new records. Yields are less, but relative to other instruments they remain competitive, and have a much lower tax rate. Two observations that became apparent are the risk-reward trade off and the yields. For Read more […]

U.S. Domestic Dividends Set Record Increases

Data is for U.S. Domestic Common Stock, not just the S&P 500 U.S. domestic common issues set a first quarter record for dividend increases, as the ‘shareholder’ return theme continued. Increases have been made easier by record earnings and record cash holdings. Additionally, many issues (especially large-caps) have heard the knocking at the boardroom door Read more […]