Downgrading The U.S. S&P Materials Sector

The rebound in U.S. materials stocks is likely to fizzle, undermined by China’s capital spending slowdown and the surge in natural gas input costs. Our U.S. equity strategists have been overweight S&P Materials as part of the deep cyclical sector … [More.]

Australia & New Zealand: Firing Up

Bullish currency developments overnight for both Australia and New Zealand: Australia: The most recent payroll report was very positive. More full-time positions were created in February than in any month since 1991. This is a reversal of the … [More.]

U.S. Bond Strategy: Stick With High-Yield

The option-adjusted spread declined 41 basis points in February and currently rests at 361, just 21 basis points above our multi-year spread target of 340. Our U.S. Bond Strategy service recommends maintaining overweight allocation to high yield … [More.]

Russia Takes It To Next Level

By invading Ukraine, Putin is putting pressure on the pro-West Yatsenyuk government and sending a strong message to the West that Russia will not tolerate the loss of Ukraine from its sphere of influence. NATO’s response will be critical for gauging t … [More.]

Chinese Slowdown: Lessons From The 1990s

For an economy with constantly increasing underlying demand and high growth potential, a seven-year growth slowdown is rare in China’s post-reform history. History never repeats itself, but our China Investment Strategy service believes that the 1 … [More.]