Highlights The global shipping-fuels market will tighten as UN-mandated fuel standards kick in next year. This will keep ship fuels, known as bunkers, and other distillate prices – e.g., diesel and jet fuel – elevated…
Overweight General Electric took the S&P industrial conglomerates index higher yesterday on news it had agreed to sell its BioPharma business to Danaher, the former home of GE’s relatively new CEO. The deal, which will…
Overweight Year-to-date, industrials stocks are the best performing GICS1 sector, outperforming the SPX by a massive 650bps. While such a breakneck pace is unsustainable and a short term breather is likely, from a cyclical…
The capex upcycle theme remains intact. Recently, there has been some softness in the investment outlays reported in the national accounts, however, it is highly unlikely that spending plans will grind to a halt similar to the…
Highlights Portfolio Strategy The ongoing capex upcycle, resurgent credit growth, easy Chinese policy trifecta, upbeat signals from high frequency financial market data and depressed technicals, all suggest that a re-rating phase…
Highlights Stay tactically overweight to equities for the time being. Close the overweight to industrial commodities versus equities. The financials, basic resources, and industrials equity sectors can continue to outperform for a…
Key Portfolio Highlights The S&P 500 has started 2019 with a bang as dovish cooing from the Fed has proven a tonic for equities. While we have not entirely retraced the path to the early-autumn highs, our strategy of staying…
The S&P industrial conglomerates index has been surging on the back of Q4 results that, while not reflecting particular operating strength, are better than the beaten down sector valuations would indicate. Importantly, MMM…
Overweight The S&P industrial conglomerates index has been surging on the back of Q4 results that, while not reflecting particular operating strength, are better than the beaten down sector valuations would indicate.…
Overweight The Q4 earnings season has become dramatic in the airlines sector as the S&P airlines index is fairly evenly split with positivity and negativity. On the positive front, both LUV and AAL delivered guidance ahead…