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Equities

Investors Should Not Chase The Rally
Our US Equity Strategy service released their Sector Chart Pack where they took stock of the recent earnings season and developments in the S&P 500. They observed that this February marked the strongest performance in the S&P 500 over the past nine…
Daily Insights
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Expected Inflation Surges, Just As Expected

Expected inflation has surged to its highest level in a year. This has surprised many people, but expected inflation is behaving just as expected. Expected inflation is not a prophecy, it is just a mathematical function of delivered inflation. We discuss what this means for central banks in the US, UK, euro area, and Japan. Plus: bitcoin’s structural uptrend to $100,000+ is still intact.

Counterpoint by Dhaval Joshi
The Fed Doesn't Need To Raise Rates To Cause A Large Hawkish Shock
We noted in a previous Insight that recent comments from Raphael Bostic, President of the Federal Reserve Bank of Atlanta, may reflect a growing realization among policymakers that they have inadvertently caused a significant easing in financial…
Daily Insights
Dax 40 Reaches New Highs: How Much Further Upside?
The stock market of the Eurozone’s largest economy keeps grinding higher with the DAX 40 closing at new highs last week. Since its October low, the index of German blue-chip companies advanced by 20%. Does this rally have legs? On a relative basis,…
Daily Insights
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Sector Chart Pack: The Rally That Keeps On Rallying

The market narrative continues to be dominated by the Magnificent Six, which drove both market performance and strong Q4 earnings results. While all sectors and styles have recently turned green, the rally is still mostly narrow. Earnings growth appears to be strong, but outside of the Magnificent Six, many companies are struggling. The market appears expensive and overbought, but that is mostly down to the high valuations and the popularity of the Magnificent Six.

US Equity Strategy by Irene Tunkel
China PMIs: Stabilizing
China’s NBS PMI release indicates that the Chinese growth is stabilizing at a low level. The composite PMI came in at 50.9 – unchanged from January. The stabilization was led by the non-manufacturing sector though both the manufacturing and non-manufacturing…
Daily Insights
Easier Financial Conditions Have Made Their Way To "Main Street"
Economic sentiment has improved since the December FOMC meeting, with positive momentum extending into February. The chart above neatly summarizes the impact that the Fed’s projected easing has had on sentiment, both on “Wall Street” and “Main Street”. The…
Daily Insights
Global Manufacturing PMI Returns To Growth
The JPM Global Manufacturing PMI improved from 50.0 to 50.3 in February, indicating that global manufacturing activity is growing again after having contracted for 18 months. Notably, new orders expanded from previously contracting levels (from 49.8 to…
Daily Insights
The Profound Underperformance Of European Equities
According to BCA Research’s European Investment Strategy service, the underperformance of European assets relative to the US is due its lagging productivity, even after adjusting for sectoral compositions in their stock markets. Structurally, European…
Daily Insights
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The Burden Of Austerity

Europe’s productivity growth lags that of the US. While structural factors contribute to Europe’s lower productivity level, the region’s recent lost decade plays an even greater role.

European Investment Strategy by Mathieu Savary

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