Highlights Broad Chinese equity market performance since last month's Party Congress is consistent with our view that the pace of reforms over the coming year will not cause a meaningful deceleration in China's industrial…

In early October, we initiated a pair trade long S&P industrials/short S&P consumer discretionary, underpinned by four key drivers: interest rates, relative demand, relative export backdrop and relative sentiment. Importantly,…

The key theme that has been driving our investment thesis in U.S. Equity Strategy in the past quarter has been accelerating global industrial production and trade, with a corresponding rotation out of defensive and into cyclical stocks…

Special Report

A capex revival is underway, powered by exceptionally strong business and consumer sentiment, the breadth of which covers virtually all developed economies. This global capex upcycle should underpin top-line growth and margin expansion…

Overweight We upgraded the S&P construction machinery & heavy truck index to overweight earlier this month, based on a fresh capex upcycle fueled by exceptionally positive expectations for global capital outlays, with…

Earlier this week, CSX led off railroad Q3 earnings, managing to beat expectations while overcoming hurricanes and derailments. Of particular note was solid pricing gains despite somewhat lagging domestic inflation and CSX-specific…

Underweight While we have turned positive on the broad industrials complex and remain constructive on most transports, we continue to recommend investors avoid the S&P airlines index. A costly price war between the low cost…

In the past few weeks, we have tweaked our cyclical portfolio exposure by downgrading early-cyclical consumer discretionary stocks to a benchmark allocation and lifting the late cyclical industrials complex to overweight. We recommend a…

Highlights Portfolio Strategy Go long industrials/short discretionary. Leading indicators of interest rates, relative sentiment, relative demand and relative exports all signal that industrials stocks will outperform their consumer…

The S&P air freight & logistics group was buffeted this week on reports that Amazon was testing its own delivery service from third-party sellers. The company's interest in operating their own logistics is hardly new news;…