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…...
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…...
Another week, another record high for the S&P 500 (SPX). This makes 20 record highs already in 2021. While it may seem as if the benchmark index has gone up in a straight line, active portfolio managers know that has not been the case, with 2 consolidation periods of greater than 4% taking place over…...
Thank you for joining us for this week’s State of the Market. My voice is back, to a greater degree at least! In this week’s SOTM we take a look at how the market rotations are affecting the strength and weakness of year-to-date trends. In 2021, investors will need to adapt to a less speculative…...
Weekly Warm-up: More on The Mid Cycle Transition to Quality; Staples over Discretionary Last week we argued for a faster transition to mid cycle dynamics which means it’s time to upgrade the quality in one’s portfolio. One sector shift that makes sense is Discretionary to Staples which received a lot of pushback. Today, we defend…...
The S&P 500 (SPX) bottomed in March of 2009 at 666, the Devil’s Bottom as it has become known. As of this past week’s record closing high, the S&P 500 stands close to 4,020. That’s a gain of more than 500%, and if we include dividends, it’s now up more than 660% from the March…...
Welcome to this week’s State of the Markets. This week’s episode will hope to find a video recording, but presently I am without my voice. That may please some of you ;-). I am hoping to have my voice back soon as it has improved today. With that being said and our apologies, when the…...
A hotter but shorter economic cycle has implications for asset allocation as well as equity portfolio construction. In the near term, it means we are likely to move out of the early cycle leadership toward mid-cycle which comes with a move up the quality curve, too. Running with the Bulls. At this point, the bullish…...
