We used this year’s underperformance in the financial sector to boost positions to overweight two weeks ago. Similarly, we recommend buying capital markets equities on price weakness. This sub-index thrives when investor risk…
Highlights Portfolio Strategy Upgrade capital markets stocks to overweight and put them on the high-conviction list. Capital formation is poised to accelerate in the second half of the year. Our Indicators suggest that demand for…
The financial sector is regaining some momentum after this year's consolidation, and the S&P asset management and custody bank (AMCB) index has the potential to take a leadership role. AMCB remains one of the most undervalued…
Highlights Portfolio Strategy Add the S&P asset manager & custody banks index to the high-conviction overweight list. Prospects for higher interest rates bode well for a catch up phase with the rest of the financials sector.…
The S&P asset manager and custody bank index is in a prime position for a catch up rally. This interest rate and market-sensitive financial sector group has lagged most others at a time when macro forces are lining up bullishly. Fed…
Highlights Portfolio Strategy The elevated ratio of market cap-to-GDP discounts strong growth far into the future, suggesting that a market validation phase may be lurking. Capital markets-sensitive stocks have had a good run, but…
After the Trump election victory, we immediately upgraded our financial sector view to neutral to protect against the benefit of rising interest rates and the potential for a clear asset preference shift in favor of stocks over bonds.…
Financials have celebrated the modest upshift in the interest rate structure and hopes for a reversal of the regulatory framework that has been a structural noose on profitability, and risk premiums. These factors, along with our…
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…
A number of large investment banks have reported better-than-expected profit results, courtesy of a flurry of trading activity. While any profit windfall is always a plus, the nature of these gains is fleeting and unlikely to break…