Economy
BCA Research's US Investment Strategy service’s yearlong recommendation to overweight equities was founded on its high-conviction view that investors were underestimating American consumers’ resources and resolve. The consensus pooh-poohed the mountain of…
According to BCA Research’s US Equity Strategy service, the outperformance of Growth sectors most likely has run its course. The team has opened an overweight in Growth vs. Value in April. Since then, the trade is up 2.73%. They are now closing this…
Outperformance of Growth sectors most likely has run its course. It is time to shift Growth vs. Value allocation to neutral, downgrade Semis, and upgrade Energy to overweight.
European real GDP growth is stabilizing, so why would European equities continue to trade sideways for the remainder of the year? The answer lies with nominal growth and its impact on earnings.
Inspired by a client’s questions, we examine the rationale behind the implementation of the trailing stop governing our near-term asset allocation recommendations.
Chinese credit and money data fell significantly below expectations in July. The CNY 0.53 trillion increase in aggregate social financing marks a significant slowdown from CNY 4.22 trillion in June and came in significantly below expectations of CNY 1.10…
The preliminary release of the University of Michigan’s Consumer Sentiment survey shows US households’ 1-year ahead inflation expectations unexpectedly ticked down from 3.4% to 3.3% in August, surprising consensus estimates of an increase to 3.5%. Similarly,…
While the July US CPI release provided a positive signal that the disinflationary trend remains intact, a key question going forward is how much more scope is there for this process to run. One way to answer this question is by assessing the progress in…
Thursday’s US CPI release showed that the disinflation trend remains intact with the monthly print remaining soft at 0.2% m/m, slightly lower than expected. The SPY initially rallied on the downside inflation surprise but quickly reversed its gains…
According to BCA Research’s Emerging Markets Strategy service, the gap that has formed between the S&P 500 price and its operating profit margins, as well as the divergence between the S&P 500 Forward P/E ratio and the 30-year TIPS yield are…