In this Strategy Outlook, we present the major investment themes and views we see playing out for the rest of 2023 and beyond.
Investors are still cautious and have significant cash that needs to be put to work. Trickle-down of it into the US equity market may extend the rally. Overly bearish futures positioning is also a strong contrarian indicator.…
Once again, global cyclical stocks have recently been outperforming defensive sectors. This comes after the late-2022/early-2023 relative rally in cyclical stocks was cut short by the emergence of bank turmoil in early March.…
As we’ve highlighted in recent Insights, the S&P 500’s year-to-date rally has been concentrated among a few mega cap stocks. In particular, companies that benefit from the AI craze have driven the gains. This…
Near the half-year mark, it is safe to say 2023 has been different than 2022 for equity investors. After being brought down in bear market territory by Europe’s energy crisis and sudden global shift to hawkish monetary…
Eurozone households are becoming less concerned about the near-term outlook for inflation. The results of the latest ECB Consumer Expectations survey show a significant drop in median 12-month inflation expectations from 5.0% in…
The Swedish manufacturing PMI declined to 40.6 in May, the lowest level since June 2020. This deterioration in Sweden’s manufacturing activity not only reflects the domestic economy, but it also highlights weaknesses in the…
Tuesday’s German factory orders release sent a disappointing signal about industrial demand. Although the pace of decline eased from -10.9% m/m to -0.4% m/m in April, it fell below expectations of a 2.8% m/m increase. Both…
The S&P 500 performance was flat in May if not for the strong performance of a small cohort of mega-caps, aided by exposure to AI. Earnings and sales growth are contracting but analysts expect a rebound into a yearend, which is…