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…
The sudden economic exuberance following the Trump election victory has caused a flight out of traditional safe havens that looks to have gone too far. For instance, consumer products stocks (household products, beverages and packaged…
Highlights Portfolio Strategy Retail food stocks are deep into the buy zone. Deflating food costs augur well for profit margins in the coming quarters. Lift the financial sector to neutral, via the asset manager and investment bank…
Consumer product stocks have had a tough few weeks, as renewed strength in the U.S. dollar threatens to undermine sales prospects. However, there are reasons to be cautiously optimistic, especially in relative terms. Consumption has a…
Consumer products stocks are likely to move to an even larger valuation premium before the cyclical outperformance phase ends.
Drug retail relative valuations have divorced from bullish indicators of top and bottom-line performance. Retail sales momentum continues to accelerate. The ongoing hospital hiring frenzy is indicative of rising procedures, and provides…
The S&P retail drug store index has been undermined by concerns about the opaque pricing structure of its pharmacy benefits management arms, which has pushed relative valuations to extremely attractive levels. While it is difficult…