Highlights Portfolio Strategy We recommend investors participate in the equity market rotation during the ongoing correction and position portfolios for next year’s bull market resumption by preferring unloved and undervalued…
Overweight A tentative up-tick in EM data in general and China in particular along with improving operating metrics signal that the US/China trade war wounded machinery stocks deserve a high-conviction overweight status for 2020. In…
Highlights Portfolio Strategy Interest rates are one of the most important macro drivers of overall equity returns via valuations. BCA’s view of a selloff in the bond market is a key factor underpinning most of our 2020 high-…
A more speculative and higher octane vehicle to explore the trade war-related mispricing from Part I of this Insight is via a long S&P machinery/short S&P semiconductors pair trade. Most of the drivers mentioned in…
Highlights Portfolio Strategy The trade-weighted U.S. dollar’s appreciation along with the still souring manufacturing data are weighing on SPX profit growth, at a time when heightened geopolitical uncertainty and a looming…
Overweight Caterpillar, the global trade bellwether, reported results yesterday that beat expectations despite sell-side pessimism that global softness had not been priced in to the stock. Of particular note was the…
Of particular note was the resilience in resource demand that was the source of both revenue and profit outperformance, as volume and price gains outweighed tariff-driven input cost increases and FX headwinds. The stock’…
Caterpillar and, by virtue of its dominance of its subsector, the S&P CMHT index was at the front of the news cycle this week as an analyst downgraded CAT based on a belief that global growth had collapsed. The market largely…
Overweight Caterpillar and, by virtue of its relative dominance, the S&P construction machinery & heavy truck (CMHT) index were at the front of the news cycle this week as an analyst downgraded CAT based on a belief…