It’s been an up-and-down week so far on Wall Street, as investors digested the latest reports from the U.S. and Europe. In economic news, Monday’s ISM manufacturing report weighed heavily on the markets; the manufacturing purchasing managers index fell to 51.3 in March from the previous month’s reading of 54.2. Meanwhile, a disappointing report on private-sector jobs growth also put a cap on gains; Automatic Data Processing and Moody’s Analytics showed an increase of 158,000 jobs in March, well below the expected 192,000. On the eurozone front, investors cheered after Cyprus’s government received an additional year to meet its budget targets [see 10 Questions About ETFs You've Been Too Afraid To Ask].
Below we outline seven insightful articles circulating around the financial space this week:
- Are Seasonal Adjustments Affecting Employment Data? at Avondale Asset Management
When it comes to the health of the U.S. economy, many turn to key labor statistics such as payroll data. In this article, Scott Krisiloff discusses whether or not seasonal adjustments affect employment data.
- Anti-Correlation Between Stocks and Bonds is Still High at Price Action Lab Blog
Many investors pay close attention to the relationships between stocks and bonds, particularly to the correlation between the two asset classes. In this article, Michael Harris highlights the strong negative correlation seen between stocks and bonds and how this may affect investors.
- Is the Stock Market Cheap? at Advisor Perspectives
For those deciding whether or not it’s too late to jump into the recent stock bull rally, this article by Doug Short may be quite useful. Short uses various valuation metrics to determine whether or not the stock market is under or overvalued.
- 7 Steps to Successful Low Volatility Investing at Tradingmarkets.com
While volatility has been somewhat subdued thus far in 2013, traders and investors alike still keep a close eye on the metric, as it can often have a significant impact on bottom line returns. In this article, Rob Davenport outlines the seven steps to his low volatility investing method.
- Kaeppel’s Big vs. Small Strategy at MarketSci Blog
In this piece, Michael Stokes examine’s Jay Kaeppel’s Big vs. Small Strategy, which uses a mechanical method to take advantage of the interplay between small and large caps. Stokes highlights the strategy’s performance over the last year, commenting on the benefits and drawbacks of following such a strategy.
- The Consumer Staples Bubble at Phil Pearlman
Over the last several years, consumer staples equities have exhibited a strong upward trend, but recently analysts have seen an unusual deviation from the very long-term trend line. In this article, Phil Pearlman discusses how this deviation could produce a consumer staples bubble.
- The Global Economy on the Fly at Project Syndicate
In this article, Nouriel Roubini, perhaps best known for predicting the 2008 financial meltdown, discusses the myriad challenges facing the global economy, discussing his thoughts on Europe, Cyprus, Germany, China, Russia, Japan, the Middle East and the U.S..
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Disclosure: No positions at time of writing.