Highlights Portfolio Strategy Firming industry demand at a time when global energy capital spending budgets are renormalizing, along with rising crude oil prices, signal that high-beta energy services equities have more running room.…
Overweight In a welcome reversal of fortunes, the S&P energy services index caught a bid last month, lifted by rising oil prices, healthy earnings and bullish 2018 forecasts. We think this is just the beginning for the beleaguered…
Our thesis of a playable rally in energy services stocks (see our Weekly Report of 11 October, 2016 for more details) was based on three key factors: troughing rig counts, cresting global oil inventories and falling production growth.…
Highlights This week, Commodity & Energy Strategy is publishing a joint report with our colleagues at BCA's Energy Sector Strategy. Driven by the leadership of the Kingdom of Saudi Arabia (KSA) and Russia, OPEC 2.0 formalized…
Highlights Portfolio Strategy Operating leverage could surprise on the strong side this year, based on the message from our pricing power and wage growth indicators. REITs are experiencing a playable recovery following the Fed-…
Energy services shares have pulled back as oil prices have marked time over the last few weeks, but in the background, the conditions to sustain a rally are falling into place. The growth in total OECD oil stocks has rolled over…
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…
Highlights Portfolio Strategy If the Fed is about to begin interest rate re-normalization in earnest, then investors should heed the message from historic sector performance during tightening cycles. The tech sector remains…