Overweight It has been in vogue to be bearish on industrials this year as they are relatively easy targets for investors fearful of a blowback over trade rhetoric. We think a negative positioning is not constructive. Our…
Highlights Portfolio Strategy Firming domestic and encouraging global macro conditions along with neutral valuations and washed out technicals suggest that the path of least resistance is higher for the S&P industrials sector. A…
Overweight (High Conviction) Our attention in the last several months has been focused on rising trade tensions and the threat they present to our bullish cyclical equity bent. One sector that has seen a particular increase in…
Overweight On Monday of this week, President Trump signed the John S. McCain National Defense Authorization Act into law. Most significantly, the bill authorizes $717 billion in defense funding for FY2019, a small increase from the $…
Overweight (High Conviction) In what has become a surprisingly repetitive narrative, global trade bellwether Caterpillar reported results yesterday that beat analyst expectations and lifted their full-year guidance. Management noted…
Sentiment Is Taking Off Overweight (High Conviction) The S&P air freight index has been rebounding this month after being buffeted by the headwinds of a potential trade war. UPS has been the leader upwards after reporting…
Underweight The S&P airlines index got a rare respite last week when United Airlines reported strong results and, perhaps more importantly, scaled back capacity growth plans. Regarding the latter, recall that earlier this year the…
Please note that our next publication will be a joint special report with BCA’s Geopolitical Service that will be published on Wednesday, August 1st instead of our usual Monday publishing schedule. Further, there will be no…
Overweight The Cass Freight Expenditures Index, a barometer of the total amount spent on freight, recorded an all-time high reading in the latest monthly report, rising by an astonishing 17.3% year-over-year on already firm comparable…
Overweight (High Conviction) The S&P air freight index has been on a tear in recent months, after putting in a bottom earlier this year. It appears the market is valuing rising global trade driving a surge in revenues over a run up…