Economy
BCA Research's US Bond Strategy service recommends a cautious allocation to high-yield munis, but the team still prefers the sector over high-yield corporate bonds. Along with junk-rated corporate bonds, high-yield munis have been one of the top performing…
Japanese real GDP grew at an annualized pace of 6% year-on-year in Q2. Reading the tea leaves from the release, public investment rose by 5% quarter-on-quarter annualized, while residential investment jumped by a whopping 7.7%. The big takeaway, however, was…
The Chinese government today announced that it is suspending the reporting of urban youth unemployment rate. This rate reached 21.3% in June after climbing since December. While there is an element of seasonality to the data – as youth unemployment rate…
The gold/silver ratio (GSR) entered a well-defined tapered wedge formation with downside support near 80, and an upside breakout around the 90 level. Back in 2020, this ratio was caught up in a race towards major overhead resistance at 100, but finally hit a…
The selloff in US Treasuries has accelerated in recent weeks and the 10-year US Treasury yield is quickly approaching the cyclical peak of 4.25% that was set last October. While momentum is certainly on the side of the bond bears, our US Bond team doesn’t see…
According to BCA Research’s European Investment Strategy service, the earnings outlook of Eurozone equities will continue to deteriorate over the coming two quarters despite the improvement in real economic activity. Earnings and revenue growth are…
Sweden’s preliminary Flash GDP data, which is subject to revisions, points a 1.5% quarter-over-quarter and 2.4% year-over-year contraction. However, this report could potentially constitute the trough in the country’s economic slowdown. Indeed, Sweden’s…
In a recently published report, BCA’s Bank Credit Analyst service reviewed the BCA Valuation Index, alongside three other US equity indicators which are published in Section III of each month’s report. The other indices included in our suite of equity…
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…