Underweight Last December when we penned the 2021 high-conviction calls Strategy Report, we put global gold miners in the “also rans” section as we did not have the courage to go underweight despite our view of an economic…
Highlights Portfolio Strategy The selloff in the long end of the Treasury bond market and related yield curve steepening, rising loan growth and a turnaround in bank net interest margins, all signal that a durable re-rating phase is…
Highlights The multiple paid for oil sector profits is collapsing because the market fears that the profits slump will not be short-lived. The fear is not just of a lasting hit to aviation and a slower recovery in road mobility, but…
Dear client, Next week instead of our regular Strategy Report we will be sending you a Special Report from BCA’s Equity Analyzer service on Inflation and Factor investing penned by my colleague Lucas Laskey, Senior Quantitative…
Overweight We reiterate our recent upgrade to overweight in the S&P materials sector. Since the late-July inception, materials stocks have been steadily climbing and also propelling our cyclicals/defensives portfolio…
Neutral It no longer pays to be bearish chemicals stocks as a depreciating dollar will be a material tailwind for the sector. The chart on the right shows the close correlation between EURUSD and relative chemicals’…
Our reinstated long S&P oil & gas exploration & production (E&P)/short global gold miners pair trade is up again near the 20% mark. This parabolic rise compels us to re-institute a 10% rolling stop in order to…
Highlights The Chinese economy continues to recover, albeit less quickly than the first two months following a re-opening of the economy. The demand side of the Chinese economic recovery in May marginally outpaced the supply side,…