Analyses on Chinese autos and Brazil are available below. Highlights The Fed’s aggressive monetization of public and some private debt has inspired investors to allocate cash to risk assets However, a number of cyclical…
Overweight Home improvement retailers (HIR) were the first consumer discretionary stocks to sniff out the end of the Great Recession, troughing even prior to the China-sensitive materials and industrials equities. As such we believe…
Overweight In the most recent Weekly Report, we boosted the S&P consumer discretionary index to overweight via upgrading its heavy-weight internet retail sub-index to an above benchmark allocation. E-commerce has been…
Highlights Stay tactically neutral to equities. The market may meet some short-term resistance, especially as a slew of poor earnings are released in the coming weeks. The long-term threat to equities comes from the pandemic’s…
Yesterday, BCA Research's US Equity Strategy service upgraded the S&P consumer discretionary sector to overweight. The Fed really cares about household net worth (HNW) because it is a key pillar of consumer spending, which…
Highlights Portfolio Strategy The Fed’s QE and ZIRP, the collapse in gasoline prices and extremely depressed breadth readings that are contrarily positive, all signal that it no longer pays to be bearish consumer discretionary…
Highlights Chinese stocks have outperformed global benchmarks by a wide margin. We are taking profits on our overweight position, and downgrading our tactical call on Chinese stocks to neutral. In absolute terms, Chinese stocks have…
Frenetic trading continued unabated in the US equity markets with some bizarre moves now a daily phenomenon. One such occurrence is the positive correlation of the VIX with the SPX, which we had flagged as a negative omen in…
Dear Client, In addition to this week’s report, BCA Research will hold webcasts over the coming days to discuss the economic and financial outlook amid the myriad of uncertainties gripping global markets. I will take part in a…
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…