United States
Do not add tactical risk yet, and monitor rates volatility for a potential re-entry point. A key factor supporting the S&P 500 beyond the AI narrative in 2025 has been declining rates volatility. Despite occasional wobbles, the MOVE index trended lower…
Favor curve steepeners and gold as recent price action highlights rising term premia and diversification away from US assets. With markets closed on Monday for the MLK holiday, Tuesday’s session saw price action reminiscent of last year’s “Sell America” trade…
Greenland has moved to the forefront of geopolitics, but a non-military resolution remains the most likely outcome. Our Geopolitical strategists do not expect the US to seize Greenland by force or collapse NATO. Nonetheless, they judge that this is not the…
Our US Investment strategists expect accommodative monetary policy in 2026, but equities may be less responsive than in prior easing cycles. Historically, equity returns have been significantly stronger under easy policy, and further Fed cuts are expected…
Remain cautious on US equities and the dollar. Our monthly BCA Views meeting concluded that the outlook has become slightly more constructive. Recession risk over the next 6-12 months remains elevated but has diminished as growth and labor market conditions…
Investors should bet against the US seizing Greenland by force and collapsing NATO. But stay tactically defensive anyway.
Maintain a modestly defensive allocation as manufacturing surveys signal resilience without momentum. The January Philly Fed and Empire Manufacturing surveys both beat estimates, rebounding to 12.6 from -10.2 and to 7.7 from -3.9, respectively. New orders and…
Our Counterpoint Strategists remain underweight duration, underweight US Treasuries versus other DM bonds, and underweight the dollar, as they see Fed cuts risk reigniting inflation. With both the unemployment rate and interest rate near their estimated…
Mortgage spread tightening has run its course. Any further drop in mortgage rates will necessitate lower Treasury yields.
Over the past few months, we have been deploying new market-timing tools aimed at improving the accuracy of our calls. Today’s report highlights our ultra high-frequency Daily Oscillators, which provide daily signals on the near-term direction of the S&P 500 and long-term Treasuries.