Neutral In our July 3rd Weekly Report, we made good on our recent upgrade alerts and raised the S&P pharma and biotech groups to neutral from underweight, locking in relative gains of 14.5% and 13.9%, respectively. In our report,…

Highlights Portfolio Strategy Five key drivers - late cycle dynamics, likelihood of pricing power regulatory relief, the rising U.S. dollar, firming operating metrics and investor and analyst capitulation- all suggest that it no…

Dear Client, Next week on November 20th instead of our regular weekly publication you will receive our flagship publication "The Bank Credit Analyst" with our annual investment outlook. Our regular publication service will…

The biotech complex has had a tough earnings season, having given up almost all of the gains made earlier this year as companies warned that intensifying competition would hurt top line growth. This corresponds with pharma pricing power…

Biotech stocks have been on a wild ride over the past four years, and are now on the downside of a deflating bubble. There are high odds that the index will fall further before reaching fundamental support levels. Sales growth rates…

The downside of a transitioning to a self-reinforcing economic dynamic is tighter financial conditions. This backdrop poses a challenge for the high-beta biotech group. The top panel of the chart shows that more restrictive monetary…

Highlights Portfolio Strategy A battle between tighter monetary conditions and the anticipation of fiscal largesse will be a dominant market theme this year. Our high-conviction equity allocation calls do not require making a major…

Highlights Portfolio Strategy Bank profits are unlikely to match those of the broad market if the Fed hikes interest rates and loan demand cools. Sell into strength. Gold shares are looking increasingly attractive, but we will…

The mini-consolidation in equities reflects the ongoing tension between market-supportive liquidity and a sketchy corporate profit backdrop.