Underweight We are currently underweight the S&P semi equipment index in line with our broader strategy of preferring defensive software & services tech stocks at the expense of the more aggressive hardware &…
Highlights Portfolio Strategy We opt to stay patient and refrain from deploying fresh capital especially in the tech sector in the near-term; a better entry point will likely materialize between now and the end of the year. The…
This summer we have been highlighting unsustainable trends in the US equity market and today we turn our attention to buybacks. As we first pointed out in the late-2019 Weekly Report, share buybacks have been a key pillar…
This report contains an error in the section related to consumer spending and fiscal policy. That error somewhat changes the conclusions from the report, and it particularly impacts Chart 3, Table 2 and Table 3. The attached note explains…
The overstretched tech stocks finally buckled after an exceptional run. The correction taking shape in those widely held stocks that have driven the entire S&P 500 higher has caused the whole market to fall as well.…
Chart 1 Today, we continue cautioning investors about how overstretched the equity market is and highlight a few key reasons not to chase it higher; especially technology stocks. The top five stocks in the SPX (AAPL, MSFT,…
Highlights EM domestic fundamentals, global trade and commodities prices, as well as global financial market themes are the main drivers of EM financial assets and currencies. The positive effect of improving global growth and rising…
Software stocks have been on a tear. This defensive-tech index has bested the SPX by 34% year-to-date, and in absolute terms is up a whopping 45%. While such a breakneck pace is clearly unsustainable, and a short-term breather…