The markets were deluged by a lot of information in late October. Several central banks made surprise moves towards tightening (the Bank of Canada, for example, ended asset purchases, and the Reserve Bank of Australia…
Highlights Equity valuations are extremely stretched versus bonds, so there is little wiggle room for bonds to sell off before pulling down large tracts of the stock market. We estimate that bond yields can rise by no more than 30 bps…
Highlights European small-cap equities have structurally outperformed large-cap stocks. This outperformance echoes the desirable sectoral biases of small-cap stocks. It also reflects the inability of European large-cap stocks to…
Highlights The global fight against the Delta variant of COVID-19 continued to show progress in the month of September, but not without cost. Growth in services activity slowed meaningfully, which has likely delayed the return to…
Highlights Evergrande has not only crossed regulatory gridlines but also regulators’ bottom lines; the government will use the example of Evergrande to impose discipline on real estate developers. The policy response will likely…
US Financials is among the best performing US equity sectors over the past three months. We expect these positive relative gains to continue. Financials will benefit from rising US bond yields over the coming year. Not only…
BCA Research’s US Bond Strategy service expects corporate bonds to outperform Treasuries during the next 6-12 month. However, both excess returns and total returns will take a step down. Two broad factors must be considered…
Highlights Investment Grade: Investment grade corporate bond total returns will be close to zero or negative during the next 12 months. The bonds are also likely to outperform duration-matched Treasuries during that period, but excess…
BCA Research's US Investment Strategy service does not expect the fall of an overextended Chinese property developer to push the US out of Goldilocks and into too-cold territory. Reports that Evergrande will fail to make…