Highlights The cost of housing is the one item that has held up US inflation vis a vis European inflation in recent years. But as the cost of housing flips from being a strong tailwind to a strong headwind, US inflation is about to…
Highlights We are moving our tactical call on Chinese stocks from neutral to overweight, bringing it inline with our cyclical stance on Chinese equities. Our cyclical overweight stance is supported by several factors: the rate of…
Highlights Money Supply Drivers: About 70% of the unprecedented increase in broad money supply is the result of the Fed’s asset purchase activity. The remaining 30% is due to an uptick in C&I loan growth, almost all of which…
Global automotive stocks are sporting their worst performance in relative terms since March 2000. At the epicenter of the selloff have been two tectonic shifts. First, the COVID-19 crisis has led to widespread shutdowns and…
Beauty is in the eye of the beholder, and the current pageant suggests the most attractive country in the world is Israel. The basis is valuation and the structural change we are witnessing in global economies. With the advent of…
Dear Client, There will be no US Equity Insights from July 1-3 inclusive, as the US Equity team will be on vacation for the week. Our regular publication schedule will resume on Monday July 13, 2020 with our Weekly Report. Happy…
Highlights The highly uncertain backdrop calls for taking less near-term risk: It may be boring, but it’s only prudent for asset allocators to limit risk exposures when the distribution of economic and public health outcomes is…
In this Monday’s Special Report, we examined which S&P 500 GICS1 sectors have historically benefited from a falling greenback. Currently, piling evidence suggests that the path of least resistance will be lower…
Highlights The economic performance of Sweden, which did not have a lockdown, has been almost as bad as Denmark, which did have a lockdown. This proves that the current recession is not ‘man-made’, it is ‘pandemic-…
Highlights The cyclical rally in stocks is not over, but the S&P 500 will churn between 2800 and 3200 this summer. Supportive policy, robust household balance sheets and budding economic growth have put a floor under global…