BCA Research's European Investment Strategy service recommends that investors play good news in Europe by remaining long EUR, CHF, and SEK versus USD, and long US T-bonds and Spanish Bonos versus German Bunds and French OATs…
Highlights Equities and other risk assets face near-term headwinds from the surge in Covid cases in the US Sun Belt and the looming fiscal cliff. We think these problems will be resolved, but the next few weeks could be rough sledding…
Highlights For financials and energy to produce a sustained rally, there must be no relapse in global growth during the autumn and winter of 2020/21. However, with the coronavirus still in play and the usual flu and virus season yet…
Last Friday, my colleague Dhaval Joshi and I held a webcast discussing investment strategies. The topics of discussion included global equity valuations, mega-cap stocks leadership and the outlook for EM stocks, fixed-income and…
Bond yields remain depressed but risks to the upside are building up. The two main factors explaining the absence of upward motion in yields have been the very easy policy conducted by central banks around the world and the…
Highlights Monetary Policy: Central bankers worldwide are promising to keeping policy rates near 0% for at least the next two years, even if inflation begins to rise again. This is an obvious form of forward guidance designed to keep…
BCA Research's US Bond Strategy service recommends that investors overweight energy issuers within the high-yield space. Specifically, investors should focus their exposure on the independent sub-sector while avoiding the…
Highlights US consumer spending will stall this summer in response to the rising number of Covid cases. Worries about the looming fiscal cliff could also dampen sentiment. Markets are likely to trade nervously over the coming days, but…
Banks continue to raise their loss provisions on their credit books because the depressed level of economic activity is increasing the risk of bankruptcies among their borrowers. For now, stalwarts like JP Morgan or US…