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Global Equity

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Farm Sector: Ploughing the Books

By | Company Insights, Corporate Governance, Global Equity | No Comments

Given that the fundamentals in the agricultural sector appear stable and the sharp rise in the use of renewable fuels across the world, market participants seem to be positively biased towards stocks that are part of the “agricultural story”. But, as always, at Multi-Act, we believe that following the herd and placing bets on stocks that enjoy a pro-cyclical review is futile if one does not also cast an eagle’s eye at the quality of the company’s financials. Read More

US bull market analysis

Are We in a Bull Market? Danger, Will Robinson, Danger!

By | Global Equity | No Comments

This article originally appeared on Advisor Perspectives.

The low-yield environment manufactured by central banks has encouraged and precipitated yield-seeking speculation. Investors and speculators alike have taken up a near-religious conviction in the demi-god status of central bankers. Will these central bankers continue to enjoy their god like status indefinitely or will they disappoint their followers? Read More

high-on-high-yeild

A Specialty Canadian Pharma Company: High on High Yield

By | Company Insights, Corporate Governance, Global Equity | No Comments

Lately, a lot of market participants are becoming skeptical about zero interest rate policies. This is particularly reflected in retail investors’ tendency of reaching for high yield (HY ETF inflows/popularity) and the incentive to the CEO community for related buybacks/acquisitions to boost reported performance during their tenure. Read More

Valuation of US equities

U.S. Equities: Overvalued or Undervalued?

By | Global Equity | No Comments

This article originally appeared on Advisor Perspectives.

“Be fearful when others are greedy, and greedy when others are fearful.” -Warren Buffett

“…. valuing the market has nothing to do with where it’s going to go next week or next month or next year, a line of thought we never get into. The fact is that markets behave in ways, sometimes for a very long stretch, that are not linked to value. Sooner or later, though, value counts.” Warren Buffett Read More

Analysis of S&P 500 companies

Profit Margins, A Bottoms-up Analysis of S&P 500

By | Global Equity, Investment Insights | No Comments
  • Profit margins as measured by Corporate Profits divided by Gross National Product are way over norm.
  • We show that profit margins for the S&P500 Index derived as Total Net Profits divided by Total Sales of all non-financial components of the index are way over mean as well.
  • We look at profit margins of various sectors and find that high profit margins aren’t limited to service businesses only. Read More
high-quality

High Quality Stocks in Developed Markets

By | Global Equity, Investment Insights | No Comments

This article originally appeared on Advisor Perspectives.

‘Quality’ is becoming widely accepted as an anomaly and is now being designated by many researchers as a fifth factor explaining investment returns along with the four widely accepted factors: beta, size, momentum, and value. This development is in sync with our long-held belief that quality is a distinct investment style.
In this article the authors, Baijnath Ramraika (CFA) and Prashant Trivedi (CFA), present a framework for superior risk-adjusted returns from high quality stocks. Read More