We have shown in recent research that the fourth year of presidential cycles finds the SPX ending the year on average in the green with a calendar return in the high single digits. Peering back in 2016 is instructive as that…

Highlights Portfolio Strategy Buybacks are down but not out. While financials have been weighing heavily on the S&P buybacks index, we would not write off the artificial engineering of higher EPS via equity retirement, especially…

  Rotation out of the tech titans is a high probability scenario given that the easy money has already been made as AAPL, MSFT and AMZN each commanded an almost $2tn market capitalization near the peak on September 2. Thus,…

Fiscal stimulus has been dominating the news flow of late. This is not surprising as COVID-19 affected consumers and businesses alike are running on empty. The Citi economic surprise index took off when the IRS started making direct…

Overweight We have been offside on the S&P industrials sector, but now is not the time to throw in the towel. In contrast we are doubling down on our overweight stance as the ongoing rotation should see some tech sector outflows…

In this Monday’s Weekly Report we reiterated our overweight stance in the S&P machinery index owing to a healthy macro backdrop. Starting from overseas, China is providing a large enough stimulus, which is on a par with the…

Highlights Portfolio Strategy We recommend investors participate in the equity market rotation during the ongoing correction and position portfolios for next year’s bull market resumption by preferring unloved and undervalued…

We first highlighted that investors were turning a blind eye to (geo)political risks on June 8, and failure to pass a new fiscal package before the election will continue to weigh on the economy and on stocks risking a further 10% drawdown…

  The market bounced off the 3233 support level this week and while volatility has retrenched, we continue to caution investors not to deploy fresh capital just yet as a better entry point will likely materialize in the coming…

  Underweight We are currently underweight the S&P semi equipment index in line with our broader strategy of preferring defensive software & services tech stocks at the expense of the more aggressive hardware &…