Highlights For the time being, our cyclical stance is to underweight the globally-sensitive Energy, Materials and Banks sectors versus Healthcare - in both the equity and credit asset-class. Combined with our expectation of a…
Highlights Trump's failures have helped fuel the bull market; Yet inflation and Trump legislative wins will embolden the Fed; The U.K. will have yet another election by 2019; Dodd-Frank repeal is a no go ... but small banks may…
Bank stocks have recently caught a bid, surging relative to the broad market in the last few trading sessions. There are good odds that an overly pessimistic loan growth outlook has been discounted, arguing for additional outperformance…
Highlights Portfolio Strategy The latest wobble in the financials sector is a buying opportunity, with the exception of the defensive insurance index. Our tactical overweight in utilities has played out. Take profits and downgrade to…
Highlights Through the 18 years of the euro, growth in 'core' Germany and France and 'periphery' Spain has equalled that in the U.S., U.K. and Canada. But Italy has severely underperformed since 2008. Italy's…
Highlights EM EPS has recovered, supporting the current rally. However, forward-looking indicators portend a reversal and potential renewed contraction in EM EPS. BCA's Emerging Markets Strategy team has a more pessimistic outlook…
Highlights Increased regulatory scrutiny on the domestic financial sector may continue to create some headline risks and financial volatility, but the real economic impact should be marginal. The recent regulatory crackdown has mainly…
We used this year’s underperformance in the financial sector to boost positions to overweight two weeks ago. Similarly, we recommend buying capital markets equities on price weakness. This sub-index thrives when investor risk…
Highlights Portfolio Strategy Upgrade capital markets stocks to overweight and put them on the high-conviction list. Capital formation is poised to accelerate in the second half of the year. Our Indicators suggest that demand for…