Highlights Recommendation Allocation  The global growth outlook remains strong, with corporate earnings likely to beat expectations for a couple more quarters. Inflation and Fed policy are key to asset allocation. We expect…

Dear Client, I had the pleasure of speaking at BCA's Annual New York conference on Monday, where I offered the following trade recommendations. This week's report is a summary of my remarks. Please note we will be publishing our…

Our market neutral trade long materials/short utilities has delivered much faster than we had anticipated, returning more than 6% since the August 21st inception. Three key factors explain the exceptional performance right out of the…

GAA DM Equity Country Allocation Model Update The GAA DM Equity Country Allocation model is updated as of August 30th, 2017. The model has continued to reduce its allocation to the U.S. driven by worsening liquidity condition, and it…

Macro conditions are ripe to initiate a market neutral trade: long materials/short utilities. This trade provides exposure to the budding shift in underlying portfolio strength away from defensives toward cyclicals1 and also from…

Highlights Portfolio Strategy Execute a long S&P energy/short global gold miners pair trade to take advantage of the liquidity-to-growth handoff. Initiate another new trade, long S&P materials/short S&P utilities, to…

While chemicals and materials are beneficiaries of an upgrading in global economic expectations (please see Monday's Weekly Report), utilities sit at the opposite end of the table (global manufacturing PMI shown inverted, top panel…

Highlights Portfolio Strategy The chemicals bear market is over. Synchronized global growth, receding global capacity and improving domestic operating conditions compel us to lift exposure to neutral. As a result, our materials sector…

Highlights Key Portfolio Updates Synchronized global economic growth is driving real yields higher and boosting equities (Chart 1). Meantime, core inflation remains muted which will ensure that Fed policy stays sufficiently…

In early-April we upgraded the S&P utilities sector to a tactical (1-3 month) overweight courtesy of five key drivers that have now largely played out (please see our Weekly Report of April 3, 2017 for more details). As a result, we…