Neutral Our 5% rolling stop in the S&P automobiles & components was triggered intraday yesterday on the back of the slipping 10-year Treasury yield, forcing us to crystalize 29% in relative gains and move this early…
Our Tesla-dominated S&P automobiles & components underweight is currently on fire (no pun intended) generating 34% in relative returns in just over a month. While our original rationale for the underweight exposure in…
Highlights Duration: Only 2 of the 5 items on our Checklist For Increasing Portfolio Duration have been checked. We will heed this message and stick with below-benchmark portfolio duration for the time being. We will have an…
Underweight “COVID-19 Winners” hypermarket equities remain a solid underweight call. Worrisomely, relative share prices recently broke down and propelled relative returns for our portfolio into the double digits…
Recently we reopened our long “Back-To-Work”/short “COVID-19 Winners” pair trade that we first instituted in the September 8th, 2020 Strategy Report, and subsequently closed earlier this year for a gain…
Overweight In the coming months the market may sniff out the China driven slowdown we highlighted in recent research. This will likely present an opportunity to further augment machinery exposure as a number of macro forces…
Underweight Last December when we penned the 2021 high-conviction calls Strategy Report, we put global gold miners in the “also rans” section as we did not have the courage to go underweight despite our view of an economic…
Highlights Portfolio Strategy The selloff in the long end of the Treasury bond market and related yield curve steepening, rising loan growth and a turnaround in bank net interest margins, all signal that a durable re-rating phase is…
Underweight Recently we highlighted how the inclusion of TSLA in the S&P consumer discretionary sector catapulted the sector’s 5-year growth forecasts to the stratosphere. We also mentioned anecdotes of sell-side analysts…
Highlights The multiple paid for oil sector profits is collapsing because the market fears that the profits slump will not be short-lived. The fear is not just of a lasting hit to aviation and a slower recovery in road mobility, but…