Research & News
Weekly Geopolitical Report – Intergenerational Forgetfulness (April 11, 2016)
by Bill O’Grady As the political nominating season in the U.S. wears on, presidential candidates have been making statements about foreign policy that would signal a significant change in direction. What has been striking about these comments is a seeming ignorance about why current policies are in place and what could occur if these policies… Read More »
Asset Allocation Weekly (April 8, 2016)
by Asset Allocation Committee One of our key investment decisions in terms of asset allocation has been to avoid emerging markets. There are primarily two reasons for this call. First, as the U.S. pulls back from its superpower position, the emerging world, which tends to be more dependent on exports for economic development, faces two significant… Read More »
Weekly Geopolitical Report – The Archetypes of American Foreign Policy: A Reprise (April 4, 2016)
by Bill O’Grady We are currently experiencing one of the most contentious primary election seasons in at least 35 years. Candidates have made numerous incendiary statements about foreign policy that offer insights into their thinking. However, without a paradigm, it can be difficult for investors to determine what foreign policy decisions a candidate is likely… Read More »
Asset Allocation Weekly (April 1, 2016)
by Asset Allocation Committee In the most recent GDP report, corporate profits plunged. The overall decline in profits was $153 bn in Q4, although some of this drop was due to an $83 bn settlement that BP had with the government over the 2010 Gulf of Mexico oil spill. We have been noting for some time… Read More »
Quarterly Energy Comment (March 24, 2016)
by Bill O’Grady The Market Oil prices have fallen steadily over the past year, reaching a new low early in the first quarter just below $30 per barrel. Since mid-February, they have staged an impressive recovery. Oil Prices and Inventories This rally has occurred despite historic levels of U.S. commercial crude oil inventories. The chart… Read More »
Weekly Geopolitical Report – The Russian Withdrawal (March 21, 2016)
by Bill O’Grady On March 14th, Russian President Vladimir Putin surprised the world with an announcement of the withdrawal of Russian troops from Syria. The move was unexpected and has raised questions as to whether Russia will really pull its forces out of Syria, and if so, why? In this report, we will examine Russia’s… Read More »
Weekly Geopolitical Report – The Apple Problem (March 14, 2016)
by Bill O’Grady On December 2, 2015, Syed Rizwan Farook and his wife, Tashfeen Malik, attacked a San Bernardino county facility, killing 14 people and seriously injuring 22 others. The couple was subsequently killed by local law enforcement in a shootout several blocks from the facility. The Federal Bureau of Investigation (FBI) opened an investigation… Read More »
Weekly Geopolitical Report – The Iranian Elections (March 7, 2016)
by Bill O’Grady On February 26, Iran held two elections, one for parliament and the other for the Council of Experts. The former is Iran’s legislative body, and the latter is the part of government that monitors the Supreme Leader and selects his replacement if he dies, becomes incapacitated or is removed. Since the 1979… Read More »
Weekly Geopolitical Report – Brexit (February 29, 2016)
by Kaisa Stucke, CFA The U.K. joined the European Common Market, what is now known as the EU, in 1973. In 1992, the Maastricht Treaty formally created the EU. However, as part of the treaty, the U.K. negotiated that it would be exempt from adopting the euro and joining the Eurozone. Despite the EU’s founding premise… Read More »
2016: An Update (February 24, 2016)
by Bill O’Grady & Mark Keller | PDF Summary: This report is an addendum to our original 2016 forecast. In our original 2016 Outlook, we forecasted a year-end S&P 500 of 2214.39, based on earnings of $121.67 and a P/E of 18.2x. As we will document below, we have revised our forecast to 2033.35, with… Read More »