Unsupervised methods, like Principal Component Analysis (PCA), can create powerful indicators that are based purely on the structure of the data and void of researcher bias. Therefore, they can provide agnostic evidence to…
After having sold off in the first five months of the year, the performance of small-cap stocks improved in June and July with the S&P 600 index gaining 13.9% in those two months. A broadening of the US equity rally –…
The jubilant summer rally came to a halt in August, with the S&P 500 down 4.4% MTD. A confluence of factors has weighed on the performance of US equities ranging from economic malaise in China to too-hot economic data…
BCA Research's US Equity Strategy service downgraded Semiconductors to underweight for the following reasons: Weakening global growth: Global semiconductor sales move in lockstep with economic growth. Global growth…
According to BCA Research’s US Equity Strategy service, the outperformance of Growth sectors most likely has run its course. The team has opened an overweight in Growth vs. Value in April. Since then, the trade is…
On Monday, Moody’s downgraded the credit ratings of 10 small to mid-sized US banks and placed some of the biggest US banks on downgrade watch. The latter include Bank of New York Mellon, US Bancorp, State Street, and Truist…
The S&P 500 rally broadened in July, lifting this year’s laggards. Surging long yields are altering the macroeconomic backdrop, as the market absorbs that monetary policy will stay restrictive for a long time. Yet, a move down in…
The recent ‘Goldilocks’ stock market rally is predicated on the hope that developed countries really can kill inflation without killing their economies. But one important warning sign suggests that the rally has gone…
Investors remain cautious about the US economy and still have significant cash that needs to be put to work which could extend the rally further. Earnings rebound later in the year will be supported by rising sales growth and surging…
BCA Research’s US Equity Strategy service recommends investors move to overweight banks over a tactical horizon. Q2 earnings results, while cheered by investors, were quite a mixed bag. And most of the bank challenges…