Richard Jones
When evaluating the performance of our momentum models we are considering the average performance across the one-, three-, and 12-month momentum models. Summary Momentum models were down -0.1% over the past week, with rates models gaining +0.1% WoW, FX models down -0.1% and equity models down -0.5% WoW. Momentum models are flat in aggregate over […]
Richard Jones
When evaluating the performance of our momentum models we are considering the average performance across the one-, three-, and 12-month momentum models. Summary Momentum models were down -0.5% over the past week, with equity models down -1.5% WoW, FX models down -0.1% WoW and rates models down -0.3% WoW. Momentum models are down in aggregate […]
Richard Jones
Summary Momentum models were up +0.1% over the past week, with equity models up 0.6% WoW, FX models down -0.1% WoW and rates models down -0.1% WoW. Momentum models are down in aggregate over three months, with rates models the best performing (-0.7%). Market Implications Momentum models have pared GBP/USD bullishness. Ben argues GBP has […]
Macro Hive
Summary A Republican sweep (red WH and Congress) could result in stagflation and force the Fed to hike. Meanwhile, a Democratic sweep (blue WH and Congress) would likely align with the Fed’s current projections. Market Implications A Trump victory would likely lead to bear steepening in the yield curve, and a stronger USD especially vs […]
Richard Jones
When evaluating the performance of our momentum models we are considering the average performance across the one-, three-, and 12-month momentum models. Summary Momentum models were down 0.1% over the past week, with equity models down 0.4% WoW, FX models flat WoW, and rates models down 0.2% WoW. Momentum models are down in aggregate over […]
Ben Ford, Bilal Hafeez
Summary Momentum models slipped -0.2% over the past week. Rates (+0.4) were the only positive performer with FX (-0.3%) and equities (-0.9%) underperforming. Momentum models underperformed across all three asset classes over a three-month timeframe (equities: -5.3%, FX: -1.7%, and rates: -1.0%). Market Implications Momentum models are heavily bullish Gilts – we are long 10Y […]
Richard Jones
When evaluating the performance of our momentum models we are considering the average performance across the one-, three-, and 12-month momentum models. Summary Momentum models were down 0.1% over the past week, with equity models down 0.5% WoW, FX models down 0.4% WoW and rates models up 0.6% WoW. Momentum models are down in aggregate […]
Richard Jones
When evaluating the performance of our momentum models we are considering the average performance across the one-, three-, and 12-month momentum models. Summary Momentum models were flat over the past week, with equity models up 0.5% WoW, rates flat WoW and FX down 0.2% WoW. All momentum models are down over a three-month timeframe, with […]
Richard Jones
When evaluating the performance of our momentum models we are considering the average performance across the one-, three-, and 12-month momentum models. Summary Momentum models were flat over the past week, with equity models down 0.1% WoW, rates up 0.2% WoW and FX unchanged WoW. FX momentum models are the best performing over a three-month […]
Macro Hive
Key Events G10 In the US, the headline is CPI and retail sales: CPI – Wednesday. Consensus expects 0.3% MoM for core. I see upside risks due to April’s rising energy prices and strong demand backdrop. Sam’s model will give an early read. Yet even with a positive surprise, this CPI print alone is unlikely […]
John Tierney
Summary This earnings season is a lot about messaging. Meta Platforms (META), Alphabet (GOOG), and Microsoft (MSFT) all beat expectations and promised AI spending. However, META collapsed for saying it will be a while before realizing a return on its investment. There are signs industrial companies are finally running down inventories and will have to […]
John Tierney
Summary Last week’s selloff in the semiconductor sector most likely opens opportunities to establish positions in the AI hardware sector. Commodity chip producers will continue struggling. The Federal Reserve (Fed) may not be cutting rates for now – but we see zero likelihood it will raise rates. And if the economy slows, we expect rate […]
John Tierney
Summary Equities are heading into Q2 with a nice tailwind. The Federal Reserve (Fed) is inclined to cut rates, and the economy and labour market are on solid footing. Analysts project earnings gains of 8.2% for the S&P 500 (SPX) and 14.8% for the NASDAQ 100 (NDX). Still, there are reasons to expect the equity […]
John Tierney
Summary The good news is the Federal Reserve (Fed) has all but promised to deliver three rate cuts in 2024 even if inflation remains slow to drop. The bad news is this was already priced into the market. With the 2Y Treasury yield still trading above 4.5%, there is little visibility now on whether or […]
John Tierney
Summary With the Ides of March over, investors are pondering the implications of last week’s hot inflation prints and another runup in Treasury yields. Our take is that equities stay in a narrow range until either inflation cools or the economy/employment slows, giving the Federal Reserve (Fed) cover to cut rates. Oracle Corp. caught a […]
Bilal Hafeez, Ben Ford
When evaluating the performance of our momentum models we are considering the average performance across the one-, three-, and 12-month momentum models. Summary Momentum models moved sideways over the past week. A positive rates (+0.3% WoW) outing battled poor equity (-0.4% WoW) and FX (-0.1% WoW) performances. Equity momentum models remain the best-performing model over […]
John Tierney
Summary We continue to see tech company outlooks come up short, with hopes for an AI bonanza delayed to later this year. Investor disappointment helped fuel Friday’s equity selloff. In the retail sector, discount and off-price vendors report strong beats and good outlooks, while full price companies are struggling. Regardless of outlook, most retailers said […]
Ben Ford
Summary Momentum models declined -0.3% over the past week. Poor rates (-1.0% WoW) and FX (-0.2% WoW) outweighed a positive equity (+0.7% WoW) outing. Equity momentum models remain the best-performing model over a three-month timeframe (+6.9%). Market Implications Momentum models are bearish EUR/USD and bullish GBP/USD – we have closed our long USD trades. They […]
Bilal Hafeez, Viresh Kanabar
Summary Momentum, growth, and quality have all outperformed the market in the last six months due to exposure to companies with strong earnings growth and profitability. These factors have also exhibited the least sensitivity to changes in bond yields recently, as the market gives more importance to higher cash flows than the discount rate. Market […]
The benefits of equity investment include capital gains and dividends. However, we also see investment in stocks as a core part of a diversified strategy alongside other asset classes such as bonds and commodities. A global equities strategy offers geographical diversification, too.
It is possible to invest in equities at an individual level, but we gear most of our research around exchange traded funds (ETFs) as these provide better, more diversified exposure to macro trends instead of company fundamentals.
For most investors, equities offer an attractive way to grow wealth over the long term. There are many types of equities. And like any asset, they can be volatile in the short term. As a risk asset, they tend to suffer during downturns or periods of bearish sentiment. Yet equity investment generally offers higher returns than bonds and cash savings in the long term.
Your portfolio allocation to equities will largely depend upon your risk appetite. If you have an aggressive risk profile, you could potentially allocate 70%. With a moderate risk profile, you could consider an allocation of 50%, while a conservative risk profile might lead you to allocate 20%.
To gain an overview of our equity market investment views, read our latest Prime Trade Ideas report.
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What Is a Stock Split?
Equity investing is money that people invest in a company by buying shares of the company on the equity market. Investing in equities allows investors to own a share of the company and profit either via a rise in the company’s value (capital gains) or the generation of dividends.
Equities in the stock market are simply shares of a company that investors and other market participants buy or sell via exchanges. There is no difference in equities vs stocks.
The market value of equity is the total value of a company’s equities expressed in its denominated currency (I.e., dollars). It is also known as market capitalization, and it is calculated by multiplying the current price of a single stock by the total number of outstanding shares.
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