Currently, Global Alpha Sector Strategy’s global equity sector earnings models are consistent with maintaining a defensive portfolio structure, which will provide protection should the liquidity-driven overshoot run into trouble in the coming months.
A Special Report published on March 6 introduced the Global Alpha Sector Strategy earnings models for the ten global equity sectors. We have identified key earnings drivers for each global sector and incorporated them into individual sector models. The objective is to forecast the direction of earnings growth. The purpose of the Special Report is to compare and contrast the readings of our global sector models with sell-side analysts’ profit growth expectations and help clients position for a volatile 2015 in the global equity market. As such, we are also initiating coverage of the ten global equity sectors. The earnings models carry the most weight in determining our sector positioning, with our macro overlay and our valuation and technical indicators rounding out our methodology.
For additional information and detailed analysis on all the ten global equity sector earnings models you can access the Global Alpha Sector Strategy Special Report: “Introducing Our Global Sector Earnings Models And Positioning”, dated March 6, 2015, available at gss.bcaresearch.com.