Developed Countries
The Health Care sector is among the best performing US equity sectors so far this year. Its 6.2% year-to-date price gain exceeds the S&P 500’s 4.3% increase and is second only to Communication Services. This marks a shift in dynamics from the earlier part…
According to BCA Research’s US Political Strategy service, Biden’s approval rating may have bottom, but it faces limited upside. Speculation about Biden stepping down has been rife since the special counsel report highlighting his old age. There is no…
Democrats remain favored for reelection in 2024, which implies gridlock and policy status quo in 2025. That is not negative for stocks in the near term. However, economic, political, and geopolitical risks will escalate from here, causing volatility.
The stronger-than-anticipated acceleration in Sweden’s headline CPI inflation is unlikely to derail the Riksbank’s plan to pivot to policy easing this year. In particular, base effects from lower energy prices a year ago are behind the 1-point increase in…
The S&P 500 forged a new all-time high last Thursday and ended the week with a 4.9% year-to-date gain, extending the rally that started in late-October. Interestingly, the recent increase comes even though investors have priced out a Fed rate cut in March…
Much of the focus of investors concerned about lingering price pressures has been on services prices. There is good reason for that. Even though core CPI inflation remains relatively elevated at 3.9% y/y in January, core goods prices fell by 0.3% y/y and are…
Japanese equities have outperformed their global peers since September 2022 in common currency terms. Over this period, the Nikkei 225 and the TOPIX posted gains of close to 50%. A weak yen has boosted Japanese multinationals’ foreign revenues and prompted…
According to BCA Research’s European Investment Strategy service, European tech stocks could outperform their US counterparts in the last leg of the rally. The tech sector is in a bubble in advanced economies. While it is logical to expect a pronounced…
Signs that we are entering the last phase of a bubble are building up. Can European equities benefit from a new tech mania?
Households have ramped up their cash holdings since the end of 2019, but the absence of an empirical link between cash and consumption leads us to believe that we’ve modestly overestimated the risk of consumer-driven overheating.