Investors have given up on European assets, which now suffer exceptional discounts to US ones. However, tighter US fiscal policy, the end of Europe’s austerity and deleveraging, the LNG Tsunami about to hit European shores, and the…
Neutral In yesterday’s Weekly Report, we outlined that the most cyclical parts of the S&P industrials index with high foreign sales content would benefit disproportionately from our stable-to-mildly sanguine EM/China view.…
Highlights Portfolio Strategy A stable China, a depreciating U.S. dollar, rising commodity prices and sustained synchronized global growth signal that the industrials complex, especially the most cyclical part, remains on a solid…
Overweight Sales departments in the S&P industrial machinery index have been exceptionally busy in the past several months as order bookings have been soaring with both domestic and global orders pouring in (second panel). With…
The dominant theme this week in U.S. Equity Strategy has been the acceleration in global trade. South Korea, the archetypal global trade bellwether, saw its exports grow by 16% in the first seven months this year with a 31% increase in…
The Empire State Manufacturing and Philadelphia Fed Business Outlook surveys typically move in lockstep and their message last week was united; the domestic outlook for manufacturing is exceptionally strong. Both surveys have…
Portfolio Strategy Any meaningful weakness in the U.S. dollar could accelerate the budding recovery in corporate revenue growth after a multiyear malaise. Following this year's underperformance, lift the industrials sector to…
This year's surge in the S&P industrial machinery index is in jeopardy of making a full reversal, because earnings follow-through is not forthcoming. Previous sources of industry support, such as aerospace and automotive demand…
Unlike rails, the S&P industrial machinery index has tested prior relative performance highs even though the global manufacturing sector is still laboring under excess capacity in Asia and weak commodity prices. Relative share price…