Research

To read Trivariate’s recent research note on what happened in Q2 click here.

At the start of each quarter, we provide a detailed summary of the just completed quarter with the goal of helping investors make better investment decisions, in addition to providing insights that will facilitate investor communications, client conversations, and quarterly letters. Furthermore, our quarterly report seeks to identify emerging risk management concerns and give investment

One discussion topic that continues to come up in our client meetings is the lack of market breadth this year.  We have several views on this topic.  Firstly, we contend stocks like Amazon, Meta, Microsoft, Apple, Tesla, Nvidia, and Google should be owned for risk management reasons, not for alpha potential.  We first wrote about

To read Trivariate’s research note on gross margins vs. inflation click here.

To read Trivariate’s recent research note on the conclusions on AI click here.

The most significant investment controversies since the Fall of 2021 have been about inflation, the changing perception about interest rates, and the Fed’s policy path.  Inflation impacts corporate profitability, and our research has long shown that changes in gross margins (profitability) are statistically significantly associated with subsequent stock returns. The consumer price index has rolled

Profitability matters, and one of the most significant expenses for many companies is labor. Since COVID, labor shortages have driven enormous pay increases resulting in a material margin impediment for many companies. Union labor has caused structurally lower margins for many mature businesses for decades, and the consistent wage increases when inflation was low were

Over the last few months, we have continued to publish our thoughts on artificial intelligence and its potential impact on US equities.  So far, we have established a few key conclusions from our evolving research: AI is one driver of the stock market performance this year, as AI stocks have outperformed growth stocks excluding AI.

To read Trivariate’s recent research note on Healthcare Stocks click here.

It is difficult to create an economic and corporate earnings narrative that explains the projected Fed path and recent market movement. The WIRP function on Bloomberg is the most common gauge of current interest rate perceptions. It shows that interest rates will be 25bps lower in six months, and the consensus rhetoric is that will