Dear client, We will not be publishing the US Equity Strategy next week, as I will be participating in BCA Investment Conference. We will return to our regular publishing schedule on September 19, 2022. Kind Regards, Irene Tunkel…
Highlights Higher copper prices will follow in the wake of China's surge in steel demand, which lifted Shanghai steel futures to an all-time high just under 5,200 RMB/MT earlier this month, as building and infrastructure projects…
Neutral Our 5% rolling stop in the S&P automobiles & components was triggered intraday yesterday on the back of the slipping 10-year Treasury yield, forcing us to crystalize 29% in relative gains and move this early…
Our Tesla-dominated S&P automobiles & components underweight is currently on fire (no pun intended) generating 34% in relative returns in just over a month. While our original rationale for the underweight exposure in…
Underweight Recently we highlighted how the inclusion of TSLA in the S&P consumer discretionary sector catapulted the sector’s 5-year growth forecasts to the stratosphere. We also mentioned anecdotes of sell-side analysts…
Highlights Portfolio Strategy Speculative fervor dominates trading in the S&P auto & components group, but soaring long-term profit projections, lofty valuations, overbought technicals, and a looming German/Japanese/Chinese…
Highlights Supply constraints and unstoppable demand growth – the result of stricter regulations requiring higher loadings in autocatalysts to treat toxic pollution in automobile-engine emissions – will continue to push…
Highlights Chinese stocks made a comeback as soon as the speed of COVID-19 transmitting outside of the epicenter somewhat moderated. Inside the epicenter, the pandemic has not shown clear signs of easing, and could significantly…
Highlights While a self-fulfilling crisis of confidence that plunges the global economy into recession cannot be excluded, it is far from our base case. Provided the trade war does not spiral out of control, it is highly likely that…