Highlights A no-deal Brexit which did not cause pain pour encourager les autres would be the much graver existential threat for the EU. A U.K. parliamentary vote to extend Article 50 by a few months would not be a game changer in…
Underweight (High-Conviction) Home Depot, the S&P home improvement retail (HIR) index heavyweight, reported earnings yesterday that missed expectations as same store sales fell well short of estimates. The company also…
Highlights Equities can continue to outperform bonds for a few months longer. The pro-cyclical equity sector stance that has worked well since last October can also continue for a few months longer. Overweight pro-cyclical Sweden…
This stunningly poor retail sales number is obviously worrisome, especially as the control group, which enters in the calculation of GDP, fell sharply as well. This catastrophic dataset, along with a poor industrial production…
Key Portfolio Highlights The S&P 500 has started 2019 with a bang as dovish cooing from the Fed has proven a tonic for equities. While we have not entirely retraced the path to the early-autumn highs, our strategy of staying…
Domestic long-term housing prospects remain compelling, especially given that the GFC wrung out all the residential real estate excesses. Currently, household formation is still running higher than housing starts and building…
Highlights Portfolio Strategy We highlight our top seven reasons of why it pays to initiate a long materials/short utilities pair trade this week. Enticing long-term residential real estate prospects, a vibrant labor market, the recent…
This pair trade is levered to the swings in residential construction compared to residential investment. Right now, the former is significantly outpacing the latter, suggesting that relative share prices have ample room to run…