Highlights Portfolio Strategy A window has opened up for utilities outperformance. Upgrade to overweight on a short-term (1-3 month) view. Leading indicators of beverage sales have improved, heralding an upgrading in depressed…

Highlights The locomotive of the U.S. economy, the consumer, remains supported by powerful tailwinds. The Fed will be able to tighten monetary policy relative to other central banks by a higher degree than the market appreciates. The…

Highlights Portfolio Strategy Internal dynamics warn that a broad market consolidation phase has begun. The jump in growth vs. value stocks has provided an opportunity to shift to a neutral style bias. Transports have sold off…

Highlights Beyond the healthcare vote and its implication for Trump's fiscal stimulus, other risks lurk in the background. Market complacency is at historical extremes but Chinese reflation is rapidly dissipating. The euro could…

Highlights Chart of the WeekCopper Term Structure, Inventories##br## Are Not Reflecting Scarcity  Transitory supply disruptions and financial demand have kept copper prices buoyant, but these influences will wane. A surge in…

Highlights U.S. Treasuries: The surprisingly positive response from financial markets to last week's Fed rate hike should force the Fed to quickly shift back to a hawkish bias. Maintain an underweight exposure to U.S. Treasuries,…

Highlights Portfolio Strategy Contrary to popular perception, non-cyclical sectors have led the market so far this year, while deep cyclical sectors are breaking down, in relative performance terms. Our models point to more of the…

Special Report

Dear Client, This week, we are sending you a piece written by my colleague Robert Ryan, Senior Vice-President for our Commodity & Energy sister service. This piece analyses dynamics in the oil markets and concludes that even if the U…

Highlights Global fundamentals - supply, demand and inventories - will support oil prices generally, and will remain bullish for the evolution toward backwardated forward curves, even as the Fed's interest-rate normalization policy…

Highlights Fed: The Fed will deliver another rate hike tomorrow, but we do not expect a signal that a higher trajectory for the funds rate is necessary. The Fed wants to see higher inflation expectations and will remain as…