Diversified Financial Services
Unresponsive…
Stick With Capital Markets…
Highlights Portfolio Strategy There are high odds that China’s real GDP deceleration will continue for the next decade, casting a shadow over the profit prospects of the S&P 1500 metals & mining index. A structural below benchmark allocation is warranted. Rising total mutual fund…
Overweight The recent global move away from risk assets has been a headwind for the high-beta S&P investment bank and brokers index that thrives when risk appetites are healthy. Still, the return of volatility should be a boon to sector earnings; trading volumes have recently spiked,…
Overweight The S&P investment bank and brokers index has been an excellent performer through the early days of the Q2 reporting season as results have generally been besting estimates and the outlook remains solid. Our interpretation of the macro data certainly concurs. The M&A cycle…
Highlights Portfolio Strategy Expensive valuations leave no room to maneuver in the S&P real estate index that has to contend with a higher interest rate backdrop and deteriorating cash flow growth fundamentals. Trim to underweight. In contrast, capital markets stocks are firing on all…
Dear Client, Today we are sending you a two-part Special Report prepared by my colleague Billy Zicheng Huang of our Emerging Markets Equity Sector Strategy team, entitled “A Sector Guide To A-shares”. Part I of the report was published in September, and emphasized the key takeaways from MSCI…
Overweight We have recently been highlighting the burgeoning capex upcycle as the key investment theme driving our sector rotation into cyclical stocks over defensives. The investment bank & brokers index in particular thrives when the business sector is moving to expansion mode. Capital…
Highlights Portfolio Strategy The financials sector's fortunes are linked to the path of 10-year Treasury yields. BCA's view of a selloff in the bond market bodes well for this interest rate-sensitive sector. The S&P banks index is on the cusp of flexing its earnings power muscle. Higher…
Overweight - High-Conviction The S&P asset management and custody banks (AMCB) index has outperformed both the S&P 500 and the broad financials index since we lifted it to a high-conviction overweight in mid-February. The tight correlation between Treasury yields and relative share…