Sector Update:  Downside Risk Considerable — Downgrading Industrials & Materials (AGAIN) — Relative Attractiveness in Growth

in Sector Update

Executive Summary We did a deep dive into our sector (GICS L-1) work and have updated our thoughts.  We are reiterating our mainly Growth above Neutral view (HC, Staples, Utilities, Energy, and Tech) and our below Neutral Cyclicals (CD, Materials, Industrials, Financials and Comm Services) weighting.  Please note that Industrials and Materials were downgraded again from Tilt Below to Full …

Sector Update: Growth Looking Better Than Cyclicality – Mix of Offensive (Tech) and Defensive (HC & Staples) Look Relatively Favorable

in Sector Update

Executive Summary We did a deep dive into our sector (GICS L-1) work and have updated our thoughts.  We are reiterating our mainly Growth above Neutral view (HC, Staples, Tech, Energy, and Utilities) and our below Neutral Cyclicals (CD, Materials, Industrials, Financials and Comm Services) weighting. Despite the ongoing rally in the S&P 500 having found new fuel in the …

Sector Update:  Downside Risk Remains — More Shifts Away From Cyclicals Lowering CD (Again), Fins, Materials — Raising HC/Staples (Again)

in Sector Update

Executive Summary We did a deep dive into our sector (GICS L-1) work and have updated our recommendations.  We are making the following changes:  Lowering CD (from Tilt Below to Full Below) and Financials/Materials (from Neutral to Tilt Below).  We are also raising HC/Staples (from Tilt Above to Full Above) and Utilities (from Neutral to Tilt Above).    Our outlook …

Sector Update:  Bounce Ending, Downside Risk Remains — Making Changes

in Sector Update

Summary Conclusions Bottom line:  We are reiterating our unfavorable view on equities, and we continue to target 3600-3500 as our next downside target.   Be careful.  Despite the possibilities of oversold tactical bounces, our key indicators are weakening and nowhere near negative extremes, which suggests downside risk remains.  Based on our work, we have the following high level thoughts: Monetary …

Sector Update:  Bounce Ending, Downside Risk Remains — Making Changes Lowering CD (Again) & Industrials — Raising Staples (Again)

in Sector Update

Executive Summary We did a deep dive into our sector (GICS L-1) work and have updated our recommendations.  We are making the following changes:  Lowering Consumer Discretionary (from Tilt Above Benchmark to Tilt Below) and Industrials (from Neutral to Tilt Below).  We are also raising Staples (from Neutral to Tilt Above).    The tactical outlook remains challenging, but our indicators …

Sector Update:  Bounce Ending, Downside Risk Remains — Making Changes

June 6, 2022 in Sector Update

Summary Conclusions Bottom line:  We are reiterating our unfavorable view on equities, and we continue to target 3600-3500 as our next downside target.   Be careful.  Despite the possibilities of oversold tactical bounces, our key indicators are weakening and nowhere near negative extremes, which suggests downside risk remains.  Based on our work, we have the following high level thoughts: Monetary …

Tactically Challenging, but Medium Term Bullish

in Sector Update

Executive Summary We did a deep dive into our sector (GICS L-1) work and have updated our recommendations.  We are making the following changes:  Lowering Energy from Above Benchmark to Tilt Above, Lowering Financials from Tilt Above to Neutral, Raising Utilities from Below Benchmark to Tilt Below.  The tactical outlook is uncertain and dependent on whether a Ukraine/Russia peace deal …