Highlights The American Rescue Plan Act confirms the shift to “Big Government” and proactive fiscal policy in US politics. This sea change in policy is durable for now, given that Democrats can pass one or two more budget…

  Overweight The inevitable economic reopening due to the population’s inoculation along with President Biden's freshly signed fiscal spending bill will pump fresh blood into the US economy that railroads –…

Highlights Portfolio Strategy Firming leading rail freight indicators signal that intermodal, coal and commodity (ex-coal) carloads are in high demand. Tack on the global economic reopening in the back half of the year and rising…

Highlights Duration: Only 2 of the 5 items on our Checklist For Increasing Portfolio Duration have been checked. We will heed this message and stick with below-benchmark portfolio duration for the time being. We will have an…

  Overweight In the coming months the market may sniff out the China driven slowdown we highlighted in recent research. This will likely present an opportunity to further augment machinery exposure as a number of macro forces…

Dear client, Next week instead of our regular Strategy Report we will be sending you a Special Report from BCA’s Equity Analyzer service on Inflation and Factor investing penned by my colleague Lucas Laskey, Senior Quantitative…

  Overweight Emerging markets (EM) and China represent the key source for the sector’s buoyancy. The EM manufacturing PMI clocking in at 53.9 hit an all-time high (top panel). China’s PMIs are also on a similar…

Dear client, Next Monday December 14, 2020 we will be hosting our last webcasts for the year “From Alpha To Omega With Anastasios”, one at 10am EST for our US, European and Middle Eastern clients and one at 8pm EST for our…

Overweight We have been offside on the S&P industrials sector, but now is not the time to throw in the towel. In contrast we are doubling down on our overweight stance as the ongoing rotation should see some tech sector outflows…

In this Monday’s Weekly Report we reiterated our overweight stance in the S&P machinery index owing to a healthy macro backdrop. Starting from overseas, China is providing a large enough stimulus, which is on a par with the…