Equities
In a month when Tech dragged the market lower, USHQ’s quality tilt paid off, beating the benchmark by 238bps with gains spread across the portfolio. USHQ SMID lagged in October but remains ahead of its benchmark since June.
MacroQuant recommends a slight underweight to equities and an overweight to bonds and cash. The model is bullish on the US dollar, negative on gold, very negative on copper, and neutral on oil.
Our EM strategists see Indonesian financial assets as a value trap rather than a buying opportunity. There is room for the ongoing sell-off in Indonesian assets to run further as the country’s macro backdrop deteriorates. President Prabowo’s growth push will…
Google’s disappointing earnings results are company-specific and not a warning sign about AI demand. Google and Microsoft reported earnings on Thursday. The former’s stock price fell sharply in response, whereas the latter was mostly flat. There are two…
Anthropic filed Form S-1 with the SEC on Monday, heightening investors’ focus on the firm’s IPO that will likely occur before the end of the year. The filing comes at a time when investors are vigorously debating whether the pace of AI-related CAPEX is too…
The euro area economic surprise index has declined significantly over the past month. This contrasts with China, where it has improved meaningfully. In the US, the surprise index was mostly unchanged in October but remained solidly in net positive territory.…
An overwhelming share of BCA clients expects US Treasuries to be a good hedge against equities in the next recession. In last week's poll, we asked our clients if they think US Treasuries will be a good hedge against equities in the next recession. 72% expect…
BCA’s geopolitical strategists argue that investors should be structurally overweight European versus US financial assets. On the political front, investors should recognize that Euroscepticism is “dead” as a risk. The importance of European integration has…
Investors are rotating from tech to ex-tech stocks on an unclear narrative. META sold off aggressively on Thursday, despite a revenue beat and positive guidance that initially saw its stock rise by over 5% in Wednesday’s after-hours trading. The NASDAQ…
Markets expect the BoC to hike by 100 bps over the next year; we do not. Housing and labor weakness argue for owning Canadian bonds now, while Carney’s reforms and a resource capex wave make the CAD and resource stocks multi-year winners.