Overweight - High Conviction The S&P construction machinery & heavy truck (CMHT) index has been waylaid this week and last following earnings reports that the market did not digest well, first from PCAR and most recently by…
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) 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…
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…
Highlights Several economic and financial market indicators point to a budding downtrend in Chinese capital spending and its industrial sector. The recent underperformance of global mining, chemicals and machinery/industrials…
Overweight – High Conviction Last autumn, we started to articulate the synchronized global capital spending macro theme that, despite still flying under the radar, will likely dominate this year. This capex upcycle is…
Highlights Portfolio Strategy Synchronized global capex growth and higher interest rates are two key themes that will continue to dominate this year. Three high-conviction calls are levered to the former theme and two to the latter. A…
Neutral In yesterday’s Weekly Report, we outlined that the most cyclical parts of the S&P industrials index with high foreign sales content would benefit disproportionately from our stable-to-mildly sanguine EM/China view.…
Highlights Portfolio Strategy A stable China, a depreciating U.S. dollar, rising commodity prices and sustained synchronized global growth signal that the industrials complex, especially the most cyclical part, remains on a solid…
Overweight Sales departments in the S&P industrial machinery index have been exceptionally busy in the past several months as order bookings have been soaring with both domestic and global orders pouring in (second panel). With…