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…...
Everyday I read The Chart Report. It’s a mixture of charts and thoughtful quotes for what I find to be “useful information”. And believe it or not, sometimes it’s not just relatable to markets, but to our every day lives. Here is a quote published in The Chart Report that I tend to think delivers…...
No month-end equity selling but likely buying, what if ship breaks, Oil and CTAs Over the past few days, the equity market was fairly weak despite no real change in the macro fundamental outlook. The Fed has remained dovish, the US stimulus was released as planned, and the pandemic and vaccination in the US are…...
