Highlights Portfolio Strategy Factors are falling into place for an earnings-led underperformance phase in health care stocks. Trim to a below benchmark allocation and execute this downgrade via reducing the heavyweight S&P…
Highlights Key Portfolio Updates Synchronized global economic growth is driving real yields higher and boosting equities (Chart 1). Meantime, core inflation remains muted which will ensure that Fed policy stays sufficiently…
Telecom services shares have been crushed this year, down by over 10% in absolute terms and 17% relative to the broad market. The collapse in relative performance has been entirely earnings driven. While every sector's EPS and sales…
Highlights Key Portfolio Highlights Improved world economic growth and rising inflation expectations have buoyed global equities (Chart 1). The downside is that financial conditions are tightening and U.S. dollar-based liquidity is…
Highlights Portfolio Strategy Pricing power has improved across a number of industries, with the exception of technology, a necessary development to sustain an overall profit recovery. The S&P railroads index has surged to the…
An attractive cyclical pair trade opportunity is developing between the S&P telecom services and S&P financial sectors. Both are depressed from an historical standpoint, but will perform differently in the face of relentless…
Consumer products stocks are likely to move to an even larger valuation premium before the cyclical outperformance phase ends.
In yesterday's Cyclical Indicator Update, incorrect text was placed with the telecom services sector chart. Below is the proper analysis. The telecom CMI has made meaningful positive strides. The sector has exited deflation just as…
Our Cyclical Indicator Update reveals that a defensive portfolio strategy remains the best bet to navigate the crosscurrents of stagnant profit/economic growth yet abundant global liquidity.