Financials stocks have taken it on the chin, reflecting the unwinding of the 'Trump Trade' following the Administration's inability to tackle health care reform. As a result, the financials sector is reverting from hopes for…
Bank stocks are being jettisoned from portfolios almost as fast as they were added after the election, on the back of the perceived dovish Fed shift and concerns about the efficacy of Trump's policy goals. The latter has raised the…
Highlights Please note that today we are publishing an abbreviated Weekly Bulletin as tomorrow we will publish Great Debate: Does China Have Too Much Debt Or Too Much Savings? The latter report will elaborate on long-standing view…
Highlights Eurostoxx50 versus S&P500 boils down to a simple choice: Banco Santander, BNP Paribas and ING; or Apple, Microsoft and Google? Right now, we would rather own the three tech stocks than the three banks - which necessarily…
Highlights Portfolio Strategy A relapse in the global financials sector threatens to spill into U.S. financials as credit growth sinks. Bank equities are the most vulnerable to such a phase, given their reliance on rising interest…
Highlights In this week's report, we update the "Three Controversial Calls"1 we made at BCA's New York Investment Conference held on September 26-27th, 2016. Call #1: "Trump Wins, And The Dollar Rallies."…
Highlights Portfolio Strategy Add the S&P asset manager & custody banks index to the high-conviction overweight list. Prospects for higher interest rates bode well for a catch up phase with the rest of the financials sector.…
The S&P asset manager and custody bank index is in a prime position for a catch up rally. This interest rate and market-sensitive financial sector group has lagged most others at a time when macro forces are lining up bullishly. Fed…
Highlights Key Portfolio Highlights Improved world economic growth and rising inflation expectations have buoyed global equities (Chart 1). The downside is that financial conditions are tightening and U.S. dollar-based liquidity is…
While bank stocks are quick to react positively to any indication that the regulatory burden may eventually be diminished, beneath the surface, there are mounting signs of profit headwinds. The latest Fed Senior Bank Loan Officer Survey…