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Equities

Global equities have reached extremes on multiple measures, none of which are reliable timing tools. But imbalances in economics and investing can build for far longer than rational analysis would predict - and usually unravel much faster than investors expect.

Investors aiming to reduce exposure to AI-related market volatility should seek refuge in the equal-weight S&P 500. The equal-weight index (EWI) meaningfully outperformed the cap-weighted index during the dotcom bust and delivered strong returns in the…

As long as the AI boom keeps booming, all other investment considerations will remain on the back burner. However, if the AI trade fizzles, this would expose deep-seated problems within the global economy, which could very well lead to an economic downturn as early as next year.

Special Report

Bitcoin miners are transitioning from a pure crypto play to AI infrastructure landlords, offering investors exposure to both a crypto recovery and the surge in secular power demand driven by the AI capex buildout.

Our EM strategists favor a tactical long China, short Korea trade. As a 0-3 month bet on mean reversion, our colleagues recommend going long an equal-weighted basket of Chinese Investable and A-shares while shorting the KOSPI. It is strictly as a short-term…
Our US Equity strategists remain constructive on the S&P 500. They identify the bond market as the principal risk to valuations in today's positive stock/bond correlation regime. Equities can tolerate higher yields when these reflect stronger growth, but…

As a short-term (0-3 months) trade, go long an equal-weighted basket of Chinese Investable and A-shares / short the KOSPI. This is a bet on mean reversion. We do not recommend that medium- and long-term investors implement this strategy.

Our latest BCA debate showed that both the equity bulls and bears may be right on different time horizons, but the burden of proof for a bearish six-month view remains high. The debate pitted the bulls, Juan Correa and Noah Weisberger, against the bears,…
Our China strategists remain overweight onshore A-shares over offshore Chinese equities, a call the K-shaped recovery in industrial profits reinforces. A-shares offer greater exposure to the advanced-manufacturing complex, which should keep outperforming,…
Special Report

The Goldilocks environment for US profit margins should start to sour next year. Contrary to conventional wisdom, AI could end up eroding margins for both producers and consumers of artificial intelligence.