Equities
Europe’s resilience to global liquidity deterioration isn’t a fluke—it signals a structural shift. Our latest report explains why the decline in precautionary money demand marks the end of Europe’s liquidity trap and what it means for investors.
This week, our three screeners cover equity plays in European Banks, US Financials, And US Stocks that are “Grave Diggers”.
The tariffs on Canada and Mexico will come into effect as scheduled while the tariffs on China will be doubled. In the Middle East, Iranian response to any attack will threaten Middle Eastern oil supply. Meanwhile, Chinese fiscal support will surprise to the upside at the Two Sessions. But Trump's China policy will cause volatility. Now that the stock market is cracking, reinitiate defensive trades, such as long treasuries versus US stocks and long global defensives versus cyclicals.
Despite the broad market being expensive and overbought, value plays across US equity sectors exist. Real Estate, Communication Services, and Consumer Staples offer cheaper valuations with higher quality attributes relative to history.