Cyclicals vs Defensives

Dear Client, I am writing as the US Capitol goes under lockdown to tell you about a new development at BCA Research. Since you are a subscriber of Geopolitical Strategy, we wanted you to be the first to know. This month we are launching a new sister service, US Political Strategy, which will…

EUR/USD Will Follow Dr. Copper And So Will Cyclical/Defensives…

What Does EUR/USD At 1.50 Mean For US Equity Sectors…

Dear client, Instead of our regular Daily Sector Insight, tomorrow we will be sending you our sister’s Geopolitical Strategy service Weekly Report with a post mortem on the US election. On Monday our regular service resumes with a Special Report on SPX earnings penned by my colleague Arseniy…

Highlights Long-term investors should seek companies and sectors that facilitate and support a new way of doing things: specifically, a way of life and business that is more de-centralised and de-urbanised… …and a way of life in which we live, work, and interact more online, remotely, and…

Highlights Portfolio Strategy Softening operating metrics, the falling US dollar, the reopening of the economy, all suggest that investors should avoid hypermarket stocks. A firming macro backdrop, the USD’s recent drop, along with the bearish signals from financial variables, all concur that…

Our recent bump of the S&P materials sector to overweight on July 27th pushed our cyclicals vs defensives positioning to the overweight column. Since then, this bent has netted our portfolio roughly 6% of returns. Similar to any rate of change series that is mean reverting by construction…

Highlights The underperformance of value versus growth has been a reason behind the dollar bull market rather than a consequence of it. The rationale is that the catalyst for any sector to outperform is return on capital rather than the cost of capital. The outperformance of health care and…

Time To Love Cyclicals! Volume 2…

Time To Love Cyclicals! Volume 1…