Highlights Portfolio Strategy Softening operating metrics, the falling US dollar, the reopening of the economy, all suggest that investors should avoid hypermarket stocks. A firming macro backdrop, the USD’s recent drop, along…
The lumber rally this year has been spectacular. We have been positive on this asset since February and sadly, cut our exposure too early relative to other commodities, five weeks ago. Nonetheless, we cannot ignore what the surge…
BCA Research's US Bond Strategy service concludes that nominal Treasury yields will move modestly higher during the next 6-12 months with the increase concentrated at the long-end of the curve. Investors should keep portfolio…
BCA Research's Global Fixed Income Strategy service concludes the easy part of the liquidity-driven rally in credit is over. More gains are to come but investors will need to be more selective. We have described the Fed…
Highlights Global Credit Spreads: The relentless rally in global credit markets since the rout in February and March has driven corporate spreads to near pre-pandemic lows in the US, Europe and even emerging markets. Central bank…
Highlights The strong rally in certain mega-cap stocks has masked the muted revival in the broad equity universe. Limited fiscal stimulus and a broken monetary transmission mechanism herald lackluster economic and profit recoveries.…
BCA Research's Global Fixed Income Strategy service observes that the correlation between relative global government bond returns and yield levels is becoming more positive. The trend should continue as long as policymakers…
Highlights Nominal Yields: Nominal Treasury yields will move modestly higher during the next 6-12 months with the increase concentrated at the long-end of the curve. Investors should keep portfolio duration close to benchmark and enter…
Highlights Scarce Yield: The correlation of relative global government bond returns and yield levels is becoming more positive. The trend should continue if central bankers across the developed world stick to their promises to maintain…