Equities
Europe was shunned while AI could do no wrong. That trade is looking tired. Falling energy prices and cracks in the AI boom favor rotating out of US equities and into cheaper European stocks. Favor defensives: Europe can win the relative race even if both markets fall.
Thursday’s selloff reflects equities moving into self-reinforcing de-risking, with technicals rather than fundamentals driving near-term moves. The S&P 500 fell close to 4% and the Nasdaq 100 close to 6% into the open on high volumes, pointing to forced…
In a month when Tech dragged the market lower, USHQ’s quality tilt paid off, beating the benchmark by 238bps with gains spread across the portfolio. USHQ SMID lagged in October but remains ahead of its benchmark since June.
MacroQuant recommends a slight underweight to equities and an overweight to bonds and cash. The model is bullish on the US dollar, negative on gold, very negative on copper, and neutral on oil.
Our EM strategists see Indonesian financial assets as a value trap rather than a buying opportunity. There is room for the ongoing sell-off in Indonesian assets to run further as the country’s macro backdrop deteriorates. President Prabowo’s growth push will…
Google’s disappointing earnings results are company-specific and not a warning sign about AI demand. Google and Microsoft reported earnings on Thursday. The former’s stock price fell sharply in response, whereas the latter was mostly flat. There are two…
Anthropic filed Form S-1 with the SEC on Monday, heightening investors’ focus on the firm’s IPO that will likely occur before the end of the year. The filing comes at a time when investors are vigorously debating whether the pace of AI-related CAPEX is too…
The euro area economic surprise index has declined significantly over the past month. This contrasts with China, where it has improved meaningfully. In the US, the surprise index was mostly unchanged in October but remained solidly in net positive territory.…
An overwhelming share of BCA clients expects US Treasuries to be a good hedge against equities in the next recession. In last week's poll, we asked our clients if they think US Treasuries will be a good hedge against equities in the next recession. 72% expect…
Investors are rotating from tech to ex-tech stocks on an unclear narrative. META sold off aggressively on Thursday, despite a revenue beat and positive guidance that initially saw its stock rise by over 5% in Wednesday’s after-hours trading. The NASDAQ…