United States
Since Silicon Valley Bank (SIVB) was seized by the FDIC last Friday, and Signature Bank (SBNY) was shuttered over the weekend, investors have been on pins and needles wondering how many more banks will fold. Our US Investment Strategy service doesn’t…
Generative AI is a major technological breakthrough that holds tremendous economic and investment promise and will have sweeping effects on wide swaths of the economy. We are bullish on generative AI as a long-term investment theme. However, at the moment we observe hallmarks of an investment frenzy. We believe that there will be a more attractive entry point for patient investors.
The results of the New York Fed’s February Survey of Consumer Expectations show a significant decline in short-term inflation expectations. Median one-year ahead inflation expectations fell by 0.8 percentage points (pp) to 4.2% – the lowest since May 2021.…
The performance of S&P 500 sectors was mixed on Monday with Financials emerging as the major loser, down 3.8%. In particular, the selloff in bank stocks deepened, with regional banks leading the decline. As BCA’s Chief US Investment strategist…
US Treasuries are rallying sharply on the expectation that the Fed will halt rate hikes in response to the collapse of Silicon Valley Bank. The 2-year yield ended the day near 4% on Monday as investors priced out rate hikes and raised bets on rate cuts later…
Our fixed income strategists recommend positioning for a bear-flattening of the US Treasury curve.
Investors in Europe and the American West are already starting to think about the implications of the 2024 election, given that sticky inflation and tighter monetary policy keep the risk of recession elevated.
The US employment report sent a mixed message for Fed policy on Friday. On the one hand, nonfarm payroll employment gains remained strong at 311 thousand in February – above expectations of 225 thousand and a pickup from the pace of increase at the end of…
Thursday’s sharp US equity selloff – which saw the S&P 500 lose 1.8% – extended to Friday, bringing down the US benchmark by another 1.4% and weighing on stocks globally. The catalyst for these moves was an announcement from SVB Financial Group of a…
According to BCA Research’s Global Investment Strategy service, over the long run, the deterioration in health trends in the US can weigh on labor supply and productivity, put upward pressure on bond yields, and hurt equity multiples. Even before Covid…