Global Macro Chart of the Week
BCA Research’s mission is to shape the level of conviction with which our clients make investment decisions. One way we do this is by delivering forecasts and leading-edge analysis of all the major asset classes and economies. Gain insight into our independent global macro research through our charts of the week.
Global Equities, Asian Exports Confirm ADXY Weakness
May 10 2023
In an insight published a couple of weeks ago, we highlighted that the typically inverse relationship between the ADXY index of Asian currencies and the DXY recently broke down with both declining over the past few weeks. In other words, while the US dollar has generally weakened against the euro and other cyclical currencies, it has strengthened against Asian emerging markets currencies. How sustainable is this divergence and how will it be resolved?
A Favorable Macroeconomic Backdrop For Big Pharma
May 03 2023
According to BCA Research’s US Equity Strategy and US Political Strategy services, the macro backdrop is favorable for Pharma. as it tends to outperform the market during the slowdown and contraction stages of the business cycle.
Europe: Hedging Market Risk
April 26 2023
According to BCA Research’s European Investment Strategy service, the downside in earnings over the remainder of the year creates a dangerous risk that can catalyze a sharp pullback at any moment. To protect themselves, investors can separate the alpha and beta decisions by being long the index, while buying baskets of sectors with an attractive valuation and EPS outlook combination and selling baskets with a poorer mix.