Telecommunication Services
Underweight In early-2018, some green shoots appeared for telecom services that an end was in sight for the nearly two years of pricing deflation hitting industry profits as some year-on-year pricing gains were eked out. However, as shown in the second panel of the chart, those year-on-year…
Underweight In our previous Insight, we highlighted the S&P REITs index’s tight inverse correlation with UST yields, but it is far from the only group with this trait. The S&P telecom services index (now a subsector within the S&P communication services index, please see our recent…
Several Indexes Have Found New Homes…
Underweight At the market's close last Friday, investors welcomed a new (rather, a renamed) GICS1 sector to the industry taxonomy: the S&P communication services sector. The change had long been overdue as the progenitor sector, telecommunication services, had been hollowed down to three…
Highlights Recommended Allocation
Quarterly - October 2018…
Highlights The renaming of telecommunication services and reallocation of some tech and consumer discretionary stocks ends a long run of a purely domestic, defensive GICS1 sector. Our initial recommendation is underweight for the newly minted S&P communication services sector. Interactive…
Following up from our inaugural U.S. Equity Market Indicators Report in early-August 2017, this week we introduce the second part in our Indicators series. In this Special Report we have drilled down to the ten GICS1 S&P 500 sectors (excluding the real estate sector) and have compiled the most…
Please note that our next publication will be a joint special report with BCA’s Geopolitical Service that will be published on Wednesday, August 1st instead of our usual Monday publishing schedule. Further, there will be no publication on Monday, August 6th. We will be returning to our normal…
Telecom services stocks rallied Tuesday, following positive news coming out of VZ's sellside analyst presentation. The mood was generous enough that our high-conviction underweight recommendation was stopped out at a 10% relative return.1 We are accordingly compelled to remove the S&P…
Underweight (High Conviction) News of a renewed attempt at a merger between Sprint and T-Mobile has weighed heavily on shares in the S&P telecom services index. Shares sold off on fears that a mightier competitor with the heft to invest in a 5G network would continue the price deflation of…