Fundstrat Mid-year 2021 Update
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Morgan Stanley: Sunday Start | What’s Next in Global Macro
The Mid-Cycle Transition Over the past month, we’ve taken a different path than most equity strategists. Rather than getting excited about the reopening, we are getting more concerned about (1) execution risk and (2) what’s already priced in.First, on the execution front, there’s growing evidence that supply remains a problem for many companies, just as…...
Investor Returns Won’t Prove Easy Hence Forth
After 3 full trading weeks, and an additional 3 trading days this past week, the S&P 500 (SPX) managed to add more gains to the already double-digit returns in 2021. The S&P 500 has now achieved 27 new, record highs in 2021, with its sights potentially on more new highs in the coming weeks and…...
Weekly State of the Market: Growth vs. Value & Markets vs. Economy
Some 90% of RIAs can’t analyze markets with any proficiency! Some 90% of analysts can’t advise clients in a manner that achieves even market performance! In other words: “Its easier to talk markets than it is to invest/trade markets. This is especially true when it’s your own capital. Remember this, next time you hear a…...
Wells Fargo: Stage 2 of V-Shaped Recovery
Global Macro spotlight by Gary Schlossberg, Global strate We believe investors looking beyond this year’s expected economic boom can expect a shift to more moderate, sustainable growth plus steadier inflation and interest rates during the latter part of 2022. Slowing economic growth has been typical during the second full year of an economic growth cycle…...
Paying The Price For Expected Returns Is Easier Said Than Done
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,…...
J.P. Morgan: Taxes & Infrastructure Spending
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…...
Sensitive Markets Demand Resilient Investing Disciplines
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…...
Weekly State of the Market: Consolidation With Strength
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,…...
Schwab: Cycles and Sector Performances
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…...
