
Trade Update: Turning Short Industrials and Materials
John Tierney
We are unwinding long positions in industrials (XLI) and materials (XLB). Both have outperformed the S&P 500 since inception on April 2022.
John Tierney
We are unwinding long positions in industrials (XLI) and materials (XLB). Both have outperformed the S&P 500 since inception on April 2022.
Bilal Hafeez
Phil is the founder of Suttle Economics – a leading research consultancy. Before that, he held senior roles at Tudor, the Institute of International Finance (IIF), JP Morgan, Barclays, the New York Fed and World Bank.
Macro Hive
CEO and Head of Research at Macro Hive Bilal Hafeez joined Bloomberg Europe today (26th January 2023) to share his thoughts on the current market rally, earnings results, and the recession outlook.
John Tierney
Our long/short ETF model portfolio is up a modest 2% since inception, and 11% excluding the difficult clean energy sector. Clean energy ETFs hold some Chinese companies, which could recover if the reopening takes hold.
Matthew Tibble
We evaluate the latest S&P 500 trends and market drivers by considering all the relevant factors and risks to answer the question: Is S&P 500 a good investment now?
John Tierney
Equities continue to trade sideways as company outlooks point to a demand increase in the coming months. About 125 companies report this week, including Microsoft and Tesla, several airlines, and several major industrial corporations.
Jon Caplis
Hedge funds performed well in 2022 against a backdrop of volatile and declining equity markets. In December, the PivotalPath Hedge Fund Composite Index rose 0.4% versus the S&P 500’s decline of 5.6%.
Bilal Hafeez
2023 has started with a positive tone. Most risk markets from equities to crypto are up, and we identify four driving themes:
John Tierney
The CPI data and first batch of earnings came in as expected, and the market rallied modestly – but it was not a game-changing week.
Bilal Hafeez
Private equity companies are performing suspiciously well and appear overvalued. Now the Fed and other central banks have ramped up rates, the PE bubble is finally starting to burst.
Jon Caplis
A quality index can serve as a meaningful benchmark to evaluate performance when investing in active managers and hedge funds. However, over $4.5tn of global hedge fund capital is benchmarked against inaccurate and often misleading indices.
John Tierney
Equities are sometimes regarded as an inflation hedge. But during the latter part of the 20th century, T-Bills were the far better investment.
Richard Jones
We review 2023 market outlooks from some of the world’s largest financial institutions.
Macro Hive
Bilal Hafeez joined Bloomberg Europe close on 9th January 2023 to give his view on the year ahead.
John Tierney
Equities may rally in the coming days, given the still-robust labour market and forthcoming Q4 earnings season. But markets remain vulnerable to bad news.
John Tierney
The hoped-for yearend rally did not happen as recession concerns continue to drag on market sentiment. But curiously, the latest batch of earnings reports display little concern about risks of a broader recession.
John Tierney
Equities continue to be caught between a fight or flight dilemma – whether to fight the Fed or capitulate before a recession arrives.
John Tierney
Fedspeak and weak retail sales triggered recession fears and a big equity selloff yesterday.
John Tierney
Our ETF model portfolio is up 0.4% since inception and down 1.5% over the past month. Energy was the worst performer, primarily because of a 16% drop in oil prices.
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.
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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