Technology

In yesterday's Weekly Report, we outlined our top ten reasons to underweight the technology sector, an out of consensus call based on the sector's resilience during the past few months' of broad market turmoil. At the root of our concern is that tech…

As confidence in the sustainability of corporate sector profitability declines, the multiple accorded to equities should recede. Ten reasons to stay underweight the tech sector. Initiate an overweight position in gold shares.

The previous Insight showed that semiconductor top-line growth remains under siege. Worse, there appears to have been little effort to realign cost structures to slower sales. The latter will become even more critical in the coming quarters, because…

Semiconductor stocks finished last year on a strong note, supported by a surge in M&A and hopes that low oil prices would spur an increase in consumer spending, particularly on electronics. While the latter has improved, the M&A backdrop is…

The defensive qualities of the S&P data processing index have served investors well in recent years, particularly given its hedge against deflation pressures (top panel). However, the index is now priced for perfection and our Indicators suggest that…

U.S. dollar softness may be sparking a subtle shift in sub-surface dynamics, to the benefit of select deep cyclical industries. Switch from rails into electrical equipment, and take profits in data processing.