US equity market euphoria got a jab in the arm yesterday and started to test the resolve of late-comers to the rally. While the self-reinforcing cycle of ultra loose financial conditions along with easy fiscal and monetary…
Highlights Portfolio Strategy Rising demand for packaging materials, increasing industry pricing power along with compelling relative valuations signal that ignored containers and packaging stocks are a hidden gem within the S&P…
Highlights There are tentative signs that US growth outperformance is ebbing. The recovery in the manufacturing sector abroad is already taking leadership from the US. This trend will soon rotate to the service sector. As such, long-…
One week following the Pfizer/BioNTech vaccine efficacy news, we boosted the S&P financials sector to overweight and since then financials have bested the SPX by 13%, an impressive run. However, the euphoria surrounding…
Highlights Stronger global growth in the wake of continued and expected fiscal and monetary stimulus, and progress against COVID-19 are boosting oil demand assumptions by the major data suppliers for this year. We lifted our…
Underweight (High-Conviction) Pharmaceutical stocks are melting in line with the broader macro-economic rebound, and given our cyclical and structural bullish market outlooks, we continue to recommend investors fade this…
Highlights Biden will host a global summit for Earth Day on April 22-23, giving public attention to his climate change policy push. Investors should count on Biden’s green infrastructure package becoming the bulk of his climate…
Overweight Our long-held view that digitalization of the economy is still in the early innings remains intact, and hence we reiterate our cyclical (and structural) preference for software companies. The recent pullback in the…
Initiating a long S&P semis/short S&P technology hardware storage & peripherals (THS&P) pair trade is the ultimate reflationary play given its tight positive correlation with the 10-year US Treasury yield (top panel). Not…
We have been inundated with client requests on how to best position for President Biden’s sweeping infrastructure spending package. We therefore constructed the BCA Biden Fiscal Advantage Basket, which comprises eight…