August PPI reading came in at 8.3%. Naturally, many investors are wondering whether the companies will be able to pass their soaring input costs to the customers. An in-depth analysis of margins and pricing power requires a significant…
Today we take a close look at the historical GICS1 level performance following the taper event in 2013. Chart 1 provides an overview of a price action of the 10-year US Treasury yield, the US dollar, and gold to provide context,…
The rally in US Treasurys since March has been positive for tech stocks. The S&P 500 tech sector outperformed the benchmark by 6.58% since then. This strong performance has occurred despite elevated inflation prints and the…
Please note that next Friday September 24 at 10am EDT, we will host a webcast featuring a debate between my colleague Peter Berezin and me. The topic of debate is whether investors should overweight EM in a global portfolio. Please join…
Highlights The US government issued its first-ever water-shortage declaration for the Colorado River basin in August, due to historically low water levels at the major reservoirs fed by the river (Chart of the Week). The drought…
FAANGs, have become the new age “staples” and provide downside protection during equity market drawdowns which are usually accompanied by falling rates and spikes in volatility. FAANGS are expensive, and falling rates…
Overweight Today we are upgrading the Semiconductor industry group to an overweight. Semis received a lot of bad press this year as chip shortages became a major production bottleneck for a range of industries from autos to…
Highlights Earnings season was impressive, with 87% of companies beating analyst earnings expectations. Analysts’ targets were too low because a whopping 38% of companies provided negative forward guidance for the Q2-2021 results…
Highlights Since 2008, the 10-year T-bond yield has struggled to exceed the earnings yield on technology stocks minus a constant of 2.5 percent. Based on the current technology earnings yield of 3.8 percent, and the 10-year T-bond…
Highlights The greatest legislative battle of the Biden presidency will unfold between now and the end of the year. Biden’s bipartisan infrastructure deal is likely to pass the Senate soon but will have to cross…