Following our recent downgrade in the S&P banks index, we were also compelled to downgrade the S&P investment banks & brokerage (IBB) index to a benchmark allocation as it has a similar investment profile. The…
Neutral We have recently downgraded the S&P banks index to neutral as yellow flags are waving on all three key bank profit drivers, namely the price of credit, loan growth and credit quality. More specifically on credit…
Highlights We are moving our tactical call on Chinese stocks from neutral to overweight, bringing it inline with our cyclical stance on Chinese equities. Our cyclical overweight stance is supported by several factors: the rate of…
Highlights Money Supply Drivers: About 70% of the unprecedented increase in broad money supply is the result of the Fed’s asset purchase activity. The remaining 30% is due to an uptick in C&I loan growth, almost all of which…
Dear Client, There will be no US Equity Insights from July 1-3 inclusive, as the US Equity team will be on vacation for the week. Our regular publication schedule will resume on Monday July 13, 2020 with our Weekly Report. Happy…
Highlights The highly uncertain backdrop calls for taking less near-term risk: It may be boring, but it’s only prudent for asset allocators to limit risk exposures when the distribution of economic and public health outcomes is…
Highlights The cyclical rally in stocks is not over, but the S&P 500 will churn between 2800 and 3200 this summer. Supportive policy, robust household balance sheets and budding economic growth have put a floor under global…
We are compelled to downgrade banks and investment banks to neutral in advance of the release of the Fed’s stress tests this Thursday. This downgrade also pushes the financials sector overweighting to neutral. Our worry…