Underweight While insurers have enjoyed a knee jerk rally recently, relative share prices remain in a downtrend, and we recommend fading this run-up. House and auto sales have been in contraction for nearly a year, which…
Underweight Stocks in the S&P insurance index have been mostly treading water since their collapse at the beginning of 2018, a result of reasonably solid premium growth and low catastrophe losses offsetting slowing growth in house…
Underweight A seldom considered victim from the slowdown in both the housing and auto markets is the top lines of property & casualty insurers. Relative growth of insurers and home & auto sales have typically shown a…
Underweight Since downgrading the insurance group to underweight nearly two years ago, we have been on the lookout for signs the environment had at least moderated; this has not been the case. Pricing power has recently…
Underweight While we continue to recommend a core portfolio overweight in the S&P financials index, the S&P insurance sub-index remains our sole underweight. Unlike its financials brethren, the insurance industry is defensive…
Highlights Portfolio Strategy Reviving global machinery end-demand alongside a global capex upcycle, are the key pillars of our high-conviction overweight call in the S&P construction machinery & heavy truck index. The…
Underweight Late-2013 saw all the right economic conditions moving in favor of insurers: the economy was entering a soft patch, the yield curve was flattening and the U.S. dollar was gaining momentum. The insurance market began…
Highlights Portfolio Strategy The latest wobble in the financials sector is a buying opportunity, with the exception of the defensive insurance index. Our tactical overweight in utilities has played out. Take profits and downgrade to…