Markets

Is It Time to Buy the Dip … in Health Care Stocks? January 19, 2022

Posted by Steven Vannelli, CFA in Markets

For all the following charts, we are looking at the sector performance and internals of our group of companies within each sector in North America. We look at the top 85% of market cap, so we consider both large and mid-caps. In the table below,…

Read More

Powell Successfully Walks the Tightrope January 11, 2022

Posted by Austin Mann in Economy, Markets, News

Below we highlight a few takeaways from Fed Chair Jerome Powell’s confirmation hearing today before the Senate Banking Committee, broken down by topic. -Focus on “less accommodative” moves -Powell made numerous statements indicating that COVID, though prevalent, will not be as pressing in policy decisions…

Read More

Forward Thinking: 2022 January 06, 2022

Posted by Steven Vannelli, CFA in Economy, Knowledge Leaders, Markets, Portfolio Management

In this quarter’s strategy report, Forward Thinking 2022, we discuss the following: -US economic growth is expected to be quite robust in 2022, despite the disruptions from the Omicron variant. Capital spending is expected to lead economic growth, which makes sense as companies invest in…

Read More

Is the Market Looking Through the Current Inflation? December 09, 2021

Posted by Steven Vannelli, CFA in Markets

This Friday we’ll see where the US CPI comes out. We recently got the November print for the Eurozone CPI, and it came in hot, hitting 4.9% year over year. This makes it all the more interesting to see the latest ZEW Inflation expectations for…

Read More

Have Option Players Taken the Week Off? November 23, 2021

Posted by Steven Vannelli, CFA in Markets

For years preceding the COVID-19 pandemic, call option volume averaged about 15% of daily NYSE volume. This was a normal level of speculation that investors were used to. Then, as the chart above illustrates, in 2020 call buying just exploded. As of this writing the…

Read More

International Stocks Could be Ripe for a Catch-Up Trade November 19, 2021

Posted by Bryce Coward, CFA in Markets

A definite feature of the last decade has been the persistent underperformance of European and Asian stocks vs US stocks. Foreign stocks have underperformed with such consistency that it’s almost expected at this point. Nonetheless, we may be at a tactical point where a mean…

Read More

Here’s Why the Fed Could Stay Easy for a LOOONG Time November 05, 2021

Posted by Bryce Coward, CFA in Economy, Markets

This week Jerome Powell tossed the market a bone by hinting that the Fed would be patient in raising short-term interest rates due to the continued slack in the US labor market and inflation that would likely be “transitory”. Yet, today, the unemployment rate dropped…

Read More

Special Report: Seasonal Tailwinds November 01, 2021

Posted by Steven Vannelli, CFA in Markets, Portfolio Management

We find compelling evidence that seasonal factors exist, historically leading November and December to be the highest 2-month combined returns all year. In our allocation portfolios, we have increased our equity exposure significantly in an effort to capitalize on these year-end trends. Please find below…

Read More

The Epitome of Financial Repression in 2 Charts October 22, 2021

Posted by Bryce Coward, CFA in Markets

By now investors are quite aware of the consequences of financial repression via negative real interest rate policies. Since interest rates on “risk free” government debt are too low to even compensate for inflation, it pushes investors out the risk spectrum in an effort to…

Read More

Japan’s Reopening Trade October 18, 2021

Posted by Steven Vannelli, CFA in Economy, Markets

In this quarter’s strategy package, we share our analysis on Japan’s Reopening Trade. In the full slide presentation, we cover the following: -Japan seems to have crushed the COVID-19 virus (for now at least) with daily new cases under 400/day. Lockdowns are over and the…

Read More

Is Inflation Starting to Impact Equity Returns? October 12, 2021

Posted by Steven Vannelli, CFA in Economy, Markets

Fed funds futures for 2022 and 2023 have broken out to new highs, likely on the back of rising inflation expectations. As things stand now, the market is looking for three hikes by the end of 2023, with the effective fed funds moving from 8bps…

Read More

Evergrande is an Isolated China Issue, for Now September 24, 2021

Posted by Bryce Coward, CFA in Markets

Earlier this week we saw some tremors in the equity markets with the largest single-day selloff in stocks in months. The likely China Evergrande debt default was “blamed” for the weakness, which was then promptly reversed as the week progressed. Questions remain, however, about the…

Read More

What is the Culprit(s) for Recent Equity Weakness? August 19, 2021

Posted by Steven Vannelli, CFA in Markets

Just when everyone thought we had COVID-19 whipped, the delta variant came along and US cases inflected higher. The 7-day moving average was about 13,000 in early July and has jumped about 10-fold to 132,000 as of yesterday. The first place this can be seen…

Read More