According to BCA Research’s US Equity Strategy service, the outperformance of Growth sectors most likely has run its course. The team has opened an overweight in Growth vs. Value in April. Since then, the trade is…
Outperformance of Growth sectors most likely has run its course. It is time to shift Growth vs. Value allocation to neutral, downgrade Semis, and upgrade Energy to overweight.
Chinese credit and money data fell significantly below expectations in July. The CNY 0.53 trillion increase in aggregate social financing marks a significant slowdown from CNY 4.22 trillion in June and came in significantly below…
The preliminary release of the University of Michigan’s Consumer Sentiment survey shows US households’ 1-year ahead inflation expectations unexpectedly ticked down from 3.4% to 3.3% in August, surprising consensus…
While the July US CPI release provided a positive signal that the disinflationary trend remains intact, a key question going forward is how much more scope is there for this process to run. One way to answer this question is by…
Thursday’s US CPI release showed that the disinflation trend remains intact with the monthly print remaining soft at 0.2% m/m, slightly lower than expected. The SPY initially rallied on the downside inflation surprise but…
According to BCA Research’s Emerging Markets Strategy service, the gap that has formed between the S&P 500 price and its operating profit margins, as well as the divergence between the S&P 500 Forward P/E ratio and…
Numerous divergences have opened up between global risk assets and global business cycle variables. These gaps are unsustainable, and odds are that the recoupling will occur to the downside with risk assets selling off.
As expected, the US CPI release shows the monthly headline and core inflation gauges were both unchanged at 0.2% m/m in July. Notably, annualized monthly core inflation fell below 2% for the second consecutive month. Similarly,…
The rise in bond yields over the past few weeks has made some investors wonder whether US Treasurys and other government bonds really are a good hedge against recession. Could there be an environment in which the economy goes…