Developed Countries
BCA Research’s Global Fixed Income Strategy service recommends that investors maintain a neutral allocation to global inflation-linked bonds versus nominals. Inflation-linked bonds (ILBs) played a useful role in bond portfolios in 2021, providing a partial…
Preliminary results from the University of Michigan Consumer Sentiment Survey suggest that American household morale firmed in December. The headline index climbed 2.3 points following November’s decline to 56.8. Importantly, consumers’ assessment of current…
S&P 500 Pricing Power: A Sector Breakdown
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S&P Valuations Ahead Of Bear Markets
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Heading into 2023, BCA Research’s European Investment Strategy service recommends fixed-income investors overweight Euro Area IG relative to both government bonds and US credit, while adopting a more cautious stance toward high-yield. European corporate…
Following the release of the Bank Credit Analyst’s annual outlook, we unveil our key views for 2023. The investment strategy takeaway is that we want to lean into risk in the early part of the year but reduce exposure to it in the second half.
We explore the eight major themes that will define economic and market trends for Europe next year.
According to BCA Research’s Foreign Exchange Strategy service, a winning strategy is to be long currencies where real interest rates could rise in a recession. These include petrocurrencies (specifically the NOK), as well as the currencies of…
The US producer price index (PPI) release was hotter-than-anticipated in November. Headline PPI for final demand was unchanged at 0.3% m/m, beating expectations of 0.2% m/m. Moreover, the core measure accelerated to 0.4% m/m from an upwardly revised 0.1% m/m,…
The latest US and Eurozone CPI inflation releases both surprised to the downside, fueling optimism among investors that central banks will soon pivot. However, US labor market dynamics remain very tight. The November jobs and wage growth figures…