Category Archives: Daily Top Ten

Topley’s Top 10 – July 25, 2017

1.Tech Expensive?  Double Digits Earnings Growth and Highest Percentage of Names Exceeding Earnings.

Tech sector stocks: Growth at a reasonable price

The tech sector posted double-digit earnings growth in the last two quarters, and it boasts the highest percentage of firms exceeding earnings expectations in the past four quarters among the 11 Global Industry Classification Standard (GICS) sectors.2

Such strong earnings growth momentum is expected to continue through 2017, evidenced by the rising earnings estimates shown in the chart below. The global economic environment is driving the sector’s growth prospects, as some of the headwinds the sector faced last year have turned into tailwinds. Since the tech sector has more foreign sales exposure than other sectors, it is more likely to benefit from the weaker US dollar and improving global growth we have seen this year.3

 

Source: Bloomberg Finance L.P., as of 6/27/2017. EPS estimates are based on consensus analyst estimates compiled by FactSet.

http://blog.spdrs.com/post/spotting-trends-despite-the-tech-sell-off-the-sector-still-offers-opportunity

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Topley’s Top 10 – July 18, 2017

1. What Happens When the VIX Hits Record Lows.

 

This happy result is not an accident. Over the last three decades, the way to have made money from the VIX was to interpret it opposite to how a contrarian would—to be a contrarian’s contrarian, if you will. That at least is the conclusion of an academic study that is forthcoming in the prestigious Journal of Finance and written by two Yale finance professors, Alan Moreira and Tyler Muir. If the future is like the past, they convincingly show, you can safely invest in equities so long as the VIX remains low. You would reduce your equity exposure only when volatility spikes.

Mark Hulbert.

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http://www.marketwatch.com/story/the-shockingly-subdued-vix-doesnt-mean-what-you-think-it-means-2017-07-18

 

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