Highlights Bulk commodity markets – chiefly iron ore and steel – could see sharp rallies once Chinese authorities give the all-clear on COVID-19 (the WHO’s official name for the coronavirus). These markets rallied…
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…
Neutral In this Monday’s Weekly Report we lifted the hard-hit S&P hotels index to neutral from previously underweight and cemented gains of 20% since inception. Relative retail sales have rebounded over the past…
Highlights Portfolio Strategy Receding interest in the coronavirus epidemic, rising demand prospects, a looming profit turnaround and compelling valuations, all signal that it no longer pays to be bearish the S&P hotels index.…
Underweight We downgraded homebuilders to underweight in late-October, and we are adding it to our high-conviction underweight call list. Most, if not all, positive profit drivers are already reflected in relative share…
Highlights Portfolio Strategy Interest rates are one of the most important macro drivers of overall equity returns via valuations. BCA’s view of a selloff in the bond market is a key factor underpinning most of our 2020 high-…
Underweight The S&P restaurants index is often mistakenly used as an early cyclical vehicle to express the “vibrant consumer” theme. However, the name of the index is deceiving as MCD and SBUX comprise ~80% of the index…
Underweight The downward oscillation in the S&P homebuilders index is slowly taking shape as the index lost more than 4% versus the SPX since inception a mere eight trading days ago. While still early we are surprised by the ferocity…