This is the time of the year when strategists are busy sending out their annual outlooks. Here on the Global Investment Strategy team, we decided to go one step further. Rather than pontificating about what could happen in 2025, we…

  Underweight “COVID-19 Winners” hypermarket equities remain a solid underweight call. Worrisomely, relative share prices recently broke down and propelled relative returns for our portfolio into the double digits…

  Underweight We have been adding cyclical exposure to the portfolio and lightening up on defensives and as a continuation of this shift we recently downgraded the S&P hypermarkets group to underweight. The economy is…

Highlights Portfolio Strategy Softening operating metrics, the falling US dollar, the reopening of the economy, all suggest that investors should avoid hypermarket stocks. A firming macro backdrop, the USD’s recent drop, along…

  Frenetic trading continued unabated in the US equity markets with some bizarre moves now a daily phenomenon. One such occurrence is the positive correlation of the VIX with the SPX, which we had flagged as a negative omen in…

  Overweight Last summer, following our recession thought experiment report1 we upgraded the S&P hypermarkets index to overweight preparing our portfolio for the inevitable recession.2 Since then, hypermarket stocks have…

Highlights Portfolio Strategy We have identified 20 reasons to start buying equities. We highlight positive catalysts that should underpin the equity market as the pandemic progresses. Investors with higher risk tolerance should…

Overweight Last week Costco reported its fiscal fourth-quarter earnings, which came in beating expectations. These results are good news for our S&P hypermarkets overweight call as Costco accounts for nearly 50% of the index. We…

  Overweight Yesterday, Walmart delivered an upbeat profit report that propelled the S&P hypermarkets index to fresh multi-year relative performance highs. More gains are in store in coming months as this safe haven index…

  S&P Hypermarkets (Overweight) Upgraded from Neutral S&P Soft Drinks (Neutral) Upgraded from Underweight As a follow up to our yesterday’s Insight where we outlined some of our reasons to go underweight the S…