Underweight This year has been a good one to be overweight the S&P hotels, resorts and cruise lines index which has outperformed the S&P 500 by a wide margin. The index's strength has been most pronounced since the…
Highlights Portfolio Strategy The S&P hotels, resorts and cruise lines index will suffer from a profit margin squeeze, which should weigh on valuations. Cut exposure to underweight. A cyclical capex recovery is a boon for…
Overweight As the concern over hurricanes Harvey & Irma related catastrophes transitions to repair & rebuilding, it is worth examining the home improvement retail (HIR) space. HIR stocks have barely budged since the hurricanes…
Highlights Beige Book highlights disconnect between inflation words and inflation data. Peak in auto sales is not a harbinger of recession. Capital spending still trending higher. Inflation and inflation surprise will need to move…
Highlights Financial markets have slipped into a 'risk off' phase. The upbeat second quarter earnings season in the U.S., Japan and the Eurozone was overwhelmed by a number of negative events. Equity bear markets are usually…
The S&P advertising index broke down after a tough Q2 earnings season that saw caution, particularly from consumer goods clients holding back advertising budgets. However, management teams maintained their full-year guidance with…
Overweight Amidst a slew of weak retail earnings reports in Q2, HD surprised with a positive result as it benefited from a surge in remodeling activity. Existing home prices are pushing against highs, which benefits home improvement…
Leisure product stocks have taken a beating this summer to nearly their lowest level since the GFC (top panel). The slide followed a tough Q2 earnings season that saw the industry miss top line and margin estimates. Unsurprisingly,…