Highlights Earnings season was impressive, with 87% of companies beating analyst earnings expectations. Analysts’ targets were too low because a whopping 38% of companies provided negative forward guidance for the Q2-2021 results…

Following up on yesterday’s Sector Insight report where we addressed the question of “how much inflation is too much” for the SPX multiple, today we conduct a similar analysis, but for earnings. Table 1 below illustrates…

Highlights Going into the new crop year, we expect the course of the broad trade-weighted USD to dictate the path taken by grain and bean prices (Chart of the Week). Higher corn stocks in the coming crop year, flat wheat stocks and…

Highlights Since 2008, the 10-year T-bond yield has struggled to exceed the earnings yield on technology stocks minus a constant of 2.5 percent. Based on the current technology earnings yield of 3.8 percent, and the 10-year T-bond…

Highlights The greatest legislative battle of the Biden presidency will unfold between now and the end of the year.   Biden’s bipartisan infrastructure deal is likely to pass the Senate soon but will have to cross…

In this Sector Insight report, we come back to the issue of “how much inflation is too much” for equities. The short answer is – equities don’t mind inflation as long as the Fed does not mind it either. Chart 1…

Foreword Today we are publishing a charts-only report focused on the S&P 500 and its sectors. Many of the charts are self-explanatory; to some we have added a short commentary.  As with the styles Chart Pack, published a month…

Highlights Investors have grown enamored with online retailers (AMZN), payment processing companies (V, MA, PYPL, SQ), and social media companies (FB, SNAP). All three sectors are likely to experience headwinds over the next 12 months…

  With two thirds of the S&P 500 companies reported Q2-2021 earnings, it becomes abundantly clear that the US experienced a rigorous economic revival in the second quarter of this year. Combination of loose fiscal and…

In yesterday’s Sector Insight report we looked at the implications of the termination of the US national eviction ban. However, just as we went to print, the news has hit the tape that the CDC announced a new 60-day eviction…