Nailed it! That must be what Fundstrat strategist Tom Lee is thinking at the end of the trading week and the end of April Lee had previously called for the S&P 500 (SPX) to achieve 4,200 by the end of April, and that is exactly what transpired in the benchmark index this past week. “So,…...
US Equity Strategy Market Update, Impact of Higher Corporate Tax and Infrastructure Spending Plan For the last twelve months, we have been aggressively pushing the upside case for equities (Market Update Mar’20). Going into this year, we argued for a continued melt-up with S&P 500 reaching 4,000 in 1Q and the majority of the upside…...
Research Report Excerpt #1 Which sector will lead the longer-term trend? Sector and style rotation has remained a dominant theme in 2021, but investors shouldn’t get too bogged down by this debate, missing the forest for the trees. It’s this constant style and sector rotation, this leadership and laggard-ship that may be making it that…
At the end of the previous trading week, the S&P 500 (SPX) was enjoying its fourth-straight up week (its longest run since last August), its biggest 16-day return (+7.6%) since November, and its 12th-straight day of setting either a record close or intraday high: The strength of the market was as undeniable as the overheated…...
In this week’s State of the Market we review a couple of key breadth indicators that may help to differentiate the potential magnitude of future corrections/consolidations. Today’s headlines disrupted markets looking to recapture recent all-time highs, which may prove a longer-term opportunity, as the sellers overwhelmed the buyers. Earnings are still pointing toward higher prices,…...
By David Kastner: Sector rotation is perhaps one of the best known and widely implemented investment strategies within equity portfolios. What is it and how does it work? Sector rotation is an active investment strategy in which equity sectors are tactically overweighted or underweighted against a benchmark weighting, such as the S&P 500®index. As you can…...
Welcome to this week’s State of the Market. In this week’s episode we take a look at robust and overheated breadth readings. Additionally, such conditions inform investors of the long-term trend and the S&P 500 forward return potential. While many are calling for larger corrections, it’s more important to continue to stick to one’s game…...
A boom or bust for the economy and markets? Risky assets will continue to benefit Our top 10 takeaways follow: 1. US growth is entering a boom period with positive spillovers. J.P. Morgan’s Economics Research team estimates US growth will reach 9.5% in 2Q and 8.3% in 3Q before trending down to 6.3% for the…
Strategy Equity and credit markets continue to grind higher, undisturbed by the recent rise in bond yields or negative news about corporate taxation. The majority of investors appear to be focusing instead on the fundamental drivers of risk markets such as the growth and earnings trajectories which appear to remain very supportive for risk…...
Research Report Excerpt #1 At the industry level, since the end of March, here is what the healthy rotation has looked like: If there has been a lesson the market has aimed to teach and inform newer investors since the election period last year it is that rotations are the sign of a healthy bull…
