The gap between what CEOs earn and what average employees take home has expanded significantly over the last several decades. Changes that would place some limitations on executive compensation would be welcome by most. However, implementing such changes may be much more difficult than many presume. One of the most common methods used by corporate […]
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Market Changes Beneath the Surface
If one only looks at the overall year-to-date change in the S&P 500 Index (+1.2%), he or she might think there has not been much change to the broader market landscape. However, by digging deeper, one will note changes in market leadership from both a sector and market capitalization perspective. In 2013, the sector delivering […]
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Sell in May and Go Away – NO WAY!
A well-known trading adage warns investors to “Sell in May and Go Away.” In other words, sell their stock holdings in May and reenter the equity market in November. This strategy allows the investor to avoid the typically volatile May-October period. It is based on the belief that the investor who avoids holding stocks during […]
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Steady as she Goes
Last week was a busy week in terms of economic data releases, which collectively suggest that in spite of a difficult first quarter, economic growth is continuing at a moderate pace. The initial estimate for Q1 of 2014 US GDP was worse than expected showing economic activity slowed to an annualized rate of 0.1% versus […]
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Financial Engineering and Share Repurchases
In investing, financial engineering refers to using mathematical principles to present a higher level of earnings. In the current low-growth environment, share repurchase is one of the most common financial engineering strategies employed by firms. The stock market continues to trade within shouting distance of its all-time highs. In such an environment, it is harder […]