Equities
Our Global Investment strategists caution that AI’s economic impact remains limited, and investor patience may wane before fundamentals catch up to valuations. While AI has dominated equity narratives in recent years, its tangible effect on the US…
US housing data remain weak, reinforcing a fragile growth backdrop and the need for equity downside protection. July housing starts rose 5.2% m/m (annualized), but building permits fell 2.8% following a small June decline. The August NAHB Housing Market…
A smooth S&P 500 rally has crushed volatility, but stretched signals argue for buying protection. The index has climbed back to all-time highs with almost no drawdown, producing a steady decline in realized volatility. This has pushed implied…
This week our three screeners highlight plays in global small-cap value stocks, gold miners, and stocks exposed to an exciting structural investment theme: Space.
Momentum is building behind small-cap and value stocks, signaling a rare dual tailwind for cyclical styles. Our Chart Of The Week comes from Guy Russell, strategist for Equity Analyzer.While market attention remains focused on the Mag 7 and Tech, Equity…
Dollar softness has had little growth impact, and European equities should keep lagging. A key 2025 trend has been USD depreciation, but the associated easing in financial conditions has offered minimal support to US growth, reflecting higher term premia…
Our Commodity strategists expect gold’s consolidation to resolve in a bullish breakout; buy gold and gold mining stocks in both absolute and relative terms. The metal’s resilience despite unfavorable cyclical drivers points to a structural bull market rather…
July PPI surprised sharply to the upside, but inflation pressures are likely to remain limited. Headline PPI rose 0.9% m/m (3.3% y/y) in July from 0.0% m/m (2.3% y/y) in June, while core PPI gained 0.6% m/m (2.8% y/y). PPI components feeding into PCE…
The fact that the yellow metal’s rally has defied headwinds from key cyclical drivers suggests that the bull market is structural, not cyclical. Buy gold and gold mining stocks in absolute and relative terms.
The outlook for European equities is becoming more appealing relative to US equities. Many structural headwinds are fading in Europe, and valuations remain historically cheap. Investors should position accordingly to benefit from the region’s cyclical rerating.