Upward pressure on Japan’s real bond yield justifies overweighting the yen and underweighting overvalued tech. Plus: two new tactical trades are long JPY/EUR and short platinum....
We have thrown caution to the wind and gone overweight equities. Why? Three reasons: the Fed is under immense political pressure to pivot, USD has depreciated, and inflation is in check. It is going to be a very difficult job for Fed Chair Powell to ignore the downside risks to both inflation and gr...
Markets are pricing a return to a neutral policy stance for the major central banks within the next 12 months. However, recession risks still loom amid slowing growth. We unpack where recession risks are underappreciated and what it means for bond positioning....
This week our three screeners identify stocks that are likely to keep delivering deliver earnings surprises in the US, European small caps that are high quality and mean reverting, and Japanese large caps picks across GICS 1 sectors....
We upgrade European small caps to maximum overweight and double down on our existing recommendation to go long European small caps relative to US ones....
Earnings growth should continue to support equity performance this year. However, after blockbuster gains, some profit-taking is likely. We recommend booking profits and increasing exposure to Defensives....
The US High Quality (USHQ) portfolio underperformed its benchmark through June, returning 1.2%, whilst its SPY benchmark returned 5.1%. On a trailing three-month basis, performance was notably weak vs. benchmark, with USHQ underperforming by approx. 600bps....
