Highlights Extremely accommodative fiscal policy and a rapid pace of vaccination puts the US on track to close its output gap by the end of the year. The situation is different in Europe, and the euro area economy will likely continue…

  Upgrade Alert Small cap indexes regained their footing late last year and recovered two years of losses relative to the SPX in a mere quarter. During that uprising in mid-January we monetized sizable gains both on a cyclical…

  We are reopening our long “Back-To-Work”/short “COVID-19 Winners” pair trade that we first instituted in the September 8th, 2020 Strategy Report, and subsequently closed earlier this year for a gain of…

  Overconcentration of returns in a handful of stocks has been an overarching theme in a number of our 2020 publications. For instance, we separated the SPX in the S&P 5 vs. the S&P 495 in late-July, and showed how a…

  ​​​​​​​Consistent with the previous Insight’s cautionary tone, we recommend investors book gains of 16% on the small size bias that we have been exploring since the October 26, 2020 inception (top panel) and 6% since the…

  Overweight Vaccine efficacy announcements have paved the way for a sustainable great rotation trade into small caps and out of large caps. One of the key small size bias drivers is the delta in sector composition between the…

Dear client, Next Monday December 14, 2020 we will be hosting our last webcasts for the year “From Alpha To Omega With Anastasios”, one at 10am EST for our US, European and Middle Eastern clients and one at 8pm EST for our…

  The vaccine announcement this week accelerated the unwinding of the long tech short everything else pandemic trade. While such a rotation is augmenting our portfolio via an explicit long “Back To Work”/short…

This week we instituted a new size view preferring small caps to large caps as the sector composition of the former is better positioned to benefit from reviving economic growth. Table 1 shows that industrials comprise the largest…