Highlights Portfolio Strategy Despite the Fed’s supra natural powers, the deep rooted global growth slowdown will likely win the tug of war versus flush liquidity, especially if the trade war spat stays unresolved and the U.S.…
This disinflationary backdrop along with the Fed’s looming easing interest rate cycle have put a solid bid under gold prices. Hypermarket equities and bullion traditionally move in lockstep, and the current message is to…
The tide is shifting and we are upgrading the S&P hypermarkets index to an above benchmark allocation. While valuations are stretched, trading at a 50% premium to the overall market on a 12-month forward P/E basis, our thesis…
Overweight The tide has shifted and on Monday we upgraded the S&P hypermarkets index to an above benchmark allocation. While valuations are stretched, trading at a 50% premium to the overall market on a 12-month forward P…
Highlights Portfolio Strategy Recession odds continue to tick higher, according to the NY Fed’s probability of recession model, at a time when global growth is waning, U.S. profit growth is contracting and the non-financial ex-…
Neutral U.S retailers have reported excellent sales numbers in the most recent quarter, most notably Walmart that delivered a surprising 3.4% same store sales growth number; the market has responded in kind and spared the S&P…
Neutral U.S retailers have been surging recently as customers have been piling in faster than they have in a long time. Walmart reported results last week showing a 4.5% increase in same-store sales and a 40% increase in…
Last week, Wal-Mart (WMT) surprised the market with exceptionally strong results, notably the 50% surge in online sales which followed a similar number the quarter before. The soaring internet sales are the culmination of a strategy to…
Neutral Wal-Mart's (WMT) second quarter earnings provided some insight into a retail landscape that is in the midst of upheaval at the hands of Amazon. While a still-strong consumer (second panel) helped drive a 1.8% same-store…
Neutral The S&P hypermarkets index has been a stalwart performer YTD, outshining both the broad consumer staples universe and the overall market by a wide margin. However; this impressive run-up is unsustainable. Three main…