Investors have given up on European assets, which now suffer exceptional discounts to US ones. However, tighter US fiscal policy, the end of Europe’s austerity and deleveraging, the LNG Tsunami about to hit European shores, and the…
Highlights Portfolio Strategy China’s slowdown, a grinding higher US dollar, extremely overbought technicals and historically pricey valuations, all signal that the time is ripe to book profits and downgrade machinery to neutral…
Overweight Caterpillar, the global trade bellwether, reported results yesterday that beat expectations despite sell-side pessimism that global softness had not been priced in to the stock. Of particular note was the…
Of particular note was the resilience in resource demand that was the source of both revenue and profit outperformance, as volume and price gains outweighed tariff-driven input cost increases and FX headwinds. The stock’…
Caterpillar and, by virtue of its dominance of its subsector, the S&P CMHT index was at the front of the news cycle this week as an analyst downgraded CAT based on a belief that global growth had collapsed. The market largely…
Overweight Caterpillar and, by virtue of its relative dominance, the S&P construction machinery & heavy truck (CMHT) index were at the front of the news cycle this week as an analyst downgraded CAT based on a belief…
Overweight - High Conviction The S&P construction machinery & heavy truck (CMHT) index has been waylaid this week and last following earnings reports that the market did not digest well, first from PCAR and most recently by…
Highlights Portfolio Strategy Firming domestic and encouraging global macro conditions along with neutral valuations and washed out technicals suggest that the path of least resistance is higher for the S&P industrials sector. A…