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Each quarter the Deep Dive Investing Team including myself, Roger Conrad, Yiannis Mostrous and Mr. X (our London-based guest contributor) meet to discuss our big picture outlook for the global economy and markets and new investment ideas or trends we’re following.

The focus of our discussion is a detailed, 33-slide deck that covers a long list of economic and market indicators we’ve been following for years including slides covering market valuations, corporate profits and margins, credit and bond markets, commodities, institutional money flows and economic data.

The purpose is not to develop a set-in-stone outlook but to set up a framework for keeping tabs on market developments, trends to watch and our strategies for investing in the current environment.

In this issue of Deep Dive Investing, I discuss some of our conclusions and takeaways from our quarterly meeting with our London-based guest contributor.

Later this evening, following the market close, we will release a separate flash alert that includes an update of our Active Total Return Portfolio and recommendations.

Most of our Focus List and Active Total Return Portfolio recommendations have now reported second quarter earnings.

In this issue, Elliott explains what we mean by “Growth” investing and how it differs from the common usage of the term in the mainstream and financial media.

In addition, Elliott offers an update of returns in the Active Total Return Portfolio and a rundown (and updated advice) on every recommendation that’s reported earnings to date.

The US stock market is more expensive today than it has been in 97.7% of months since January 1881 and those excesses are partly driven by the shift in favor of passive/ETF and quantitative investing strategies. The unprecedented wave of global quantitative easing and monetary stimulus since the 2007-09 financial crisis has further fueled passive investing and valuation excesses.

To generate superior profits in this environment we’re focused on looking for inefficiencies and an investment “edge” in parts of the market the crowd ignores.

We’re introducing a new actively managed model portfolio to offer additional guidance on what stocks to buy, when and how to buy them, when to sell and how to manage growing market risks as we approach the end of the cycle.

Elliott examines global equity and credit markets with a special guest contributor joining via phone from London. He also updates the Growth Focus List recommendations including a strategy for taking profits on one of our biggest winners to date.

Stocks issued by companies that exhibit higher earnings quality and profitability tend to outperform in a bull market’s latter stages.

Elliott Gue explains why the bull market has more room to run, despite the S&P 500’s recent swoon. He also revisits his favorite themes and adds a few names to the Focus List.

Elliott Gue highlights the strong returns posted during the final 12 to 24 months of a bull market and introduces his 10-point checklist for forecasting bear markets.

Elliott Gue updates his buy targets for the names on the Growth Focus List and adds two new positions.

Elliott Gue explains one of his favorite screens for value stocks and adds two names to the Focus List.

Elliott Gue revisits his favorite financial stocks and adds two new names to this theme.

Elliott Gue updates his outlook on the peak of the auto cycle and exits one short idea.

The picks in our Industrials theme have outperformed the broader market. Elliott Gue updates his outlooks and buy targets for these names.

As the post-Great Recession auto cycle starts to sputter, opportunities abound for investors on the short side and the long side.

Elliott Gue updated his Deep Dive on the financial and industrial sectors, selling a regional bank that has lagged and adding an attractively valued industrial company based in France.

The internet of things and machine-to-machine communications are bringing big changes to the industrial sector. Elliott Gue highlights the best investment opportunities in this exciting field.

We revisit our investment thesis for regional backs, dig into first-quarter results from our top picks and add two financial stocks to this basket.