Highlights Our willingness to spend money depends on which ‘mental account’ it occupies. Once windfall income enters our ‘savings mental account’, we will not spend it. Hence, the pandemic’s windfall…
Highlights China’s credit tightening may have surpassed maximum strength. Monetary policy will remain accommodative and fiscal policy will become more supportive in the rest of the year. However, overall regulatory oversight is…
Highlights We are reviewing our recommendations. We are also introducing recommendation tables to monitor these positions. Overall, our main recommendations have generated alpha and have a positive batting average. Feature The end…
FAANGs, have become the new age “staples” and provide downside protection during equity market drawdowns which are usually accompanied by falling rates and spikes in volatility. FAANGS are expensive, and falling rates…
The S&P 500 has just hit its 50th all-time high this week, while the 10% pullback, widely anticipated by the professional investors, is yet to materialize. To be sure, the last pullback of such magnitude took place nearly a year ago,…
Highlights The post-pandemic investment phase is just a continuation of the post-credit boom investment phase. This is because the pandemic has just accelerated the pre-existing shifts to a more remote way of working, shopping and…
Highlights China’s new plan for “common prosperity” is a long-term strategic plan to bulk up the middle class that will strengthen China – if it is implemented successfully. The record on implementing reforms…
Highlights US crude oil output will continue its sharp recovery before leveling off by mid-2022, in our latest forecast (Chart of the Week). The recovery in US production is led by higher Permian shale-oil production, which is quietly…
In this Monday’s Strategy Report we took a deep dive into this quarter’s earnings dynamics across sectors and styles, as well as examined where did the bulk of the market return come from. Return decomposition…
Overweight Today we are upgrading the Semiconductor industry group to an overweight. Semis received a lot of bad press this year as chip shortages became a major production bottleneck for a range of industries from autos to…