Gold: Play The Coming Countertrend Rally?

In recent months, gold prices have failed to rise despite dollar weakness. Some catch-up is likely. In our view, the main driver for gold's "surprising weakness" has been liquidation and capitulation out of gold as an investment vehicle. It is … [More.]

We Would Buy All The Corporate Bonds The IMF Wishes To Sell

Our U.S. Corporate Health Monitor remains firmly in improving health territory, which historically lines up very well with periods of corporate bond outperformance. Apart from corporate sector fundamentals, our default rate outlook also continues to … [More.]

U.S. Equities: Lift-Off

The short-term resolution to Washington’s folly ignited stocks last week, kicking off what looks to be an equity overshoot phase. Even a soft earnings season is unlikely to derail the budding positive momentum in the broad market: investors may award … [More.]

Underweight U.S. Oil & Gas Producers

The U.S. S&P energy exploration & production (E&P) index has rallied smartly on a relative basis in the past few months. Our U.S. equity strategists believe that the upside potential has been fully harvested. E&P companies are … [More.]

Global Growth Expectations: Too Pessimistic

Bloomberg consensus expectations for real GDP growth next year in the U.S. and in the other major economies have dipped to just 2.6 and 3%, respectively. This represents only a mild acceleration in growth relative to 2013 and is too pessimistic in … [More.]