Health Care

While technology sector profits are disappointing on the back of the paucity of volume growth and deflation (i.e. INTC, IBM), the same is not true for health care companies. Several large cap health care firms have reported robust earnings results (i.e. JNJ, UNH), reflecting steady non-cyclical…

We are confident that the reward/risk tradeoff to holding equities and high-yield corporate bonds is deteriorating and that rallies in these assets are high-risk affairs.

The self-driving car, or Autonomous Vehicle (AV), will have a profound impact on a variety of industries. However, expectations for the timeframe of commercial AV availability are too optimistic. The greatest near-term impact is likely to be from advanced safety technologies developed on the path to full autonomy. In today's <i>Special Report</i>, we discuss our expectations for the timeframe of AV development, and the effect of advanced safety technologies on the Insurance, Health Care, Semiconductors, and Automotive industries.

Last week we added the overall health care sector to our high-conviction overweight list, given our confidence that defensive sectors will continue to outperform the broad market on a cyclical basis, regardless of the latter's near-term trend. As part of this move, the S&P managed care index…

Equities are back in overshoot territory. We added the health care sector to our high-conviction overweight list, boosted managed care to overweight and put health care equipment on downgrade alert. Buy cable stocks.

Monday's Special Report highlighted an overwhelmingly bullish macro backdrop for defensive sector relative performance. Health care is a key defensive component, but it has been hit hard in recent weeks, denting investor confidence. The main culprits behind the pullback have been the bounce in…

The S&P pharmaceutical index has checked back relative to the broad market, reflecting the powerful short covering and relief rally in higher beta sectors in recent weeks. While this trend may persist in the very near run, we expect relative performance to follow relative forward earnings…

The Fed's recent dovishness represents an acknowledgement of the feedback loop between Fed policy and financial conditions. Expect Fed hawkishness to ramp back up prior to the next rate hike, likely in June.

The Fed's recent dovishness represents an acknowledgement of the feedback loop between Fed policy and financial conditions. Expect Fed hawkishness to ramp back up prior to the next rate hike, likely in June.

While high-beta equity areas have rebounded smartly in recent trading sessions, we remain skeptical that earnings-follow through will be forthcoming. Instead, our portfolio remains defensively-geared, where profit support is strongest. For instance, the latest manufacturing data showed that…