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  1. Earnings Outlook: Vacation and Cruise Plans in Focus This Week

    John Tierney

    Equities took a hit on concerns about a hawkish Federal Reserve (Fed), but finished the week with continued hopes that priority is still a soft landing. 

  2. Momentum Models Flag the S&P 500 to Underperform

    Bilal Hafeez, Ben Ford

    Momentum model signals sit in contrast to our view to fade CHF strength. They are also yet to get fully on board with our bullish USD basket trade (vs EUR, CHF and GBP).

  3. Markets to Watch This Week – Get Ready for the BoE’s Final Hike

    Bilal Hafeez, Viresh Kanabar

    ECB pulled off a dovish hike, but we see more to come. The ECB hiked by 25bps as Henry had expected for some time. They also increased their interest rate forecasts for this year and next, driven by higher energy prices.

  1. Earnings Outlook: Oracle, Adobe Look Attractive as Equity Logjam Persists

    John Tierney

    Equities remain mired in a narrow trading range that began in early July. The end of summer and hot weather season may bring little relief. We see the logjam continuing until the economy breaks weaker and forces the Fed to choose between keeping the recovery going (i.e., easing) or damping inflation (i.e., higher for longer).  

  2. Momentum Models Move Max Long S&P While Being Max Short 10Y Treasuries

    Bilal Hafeez, Ben Ford

    Momentum models are moving towards our view that GBP/CAD will trade lower over the next six months. They also back our bias to expect European equities to underperform US equities. 

  3. Markets to Watch This Week: A Cautious Hike for the ECB?

    Bilal Hafeez, Viresh Kanabar

    The quarterly Beige Book was released last week, continuing to point to strong growth, falling inflation and a loosening labour market. Here are our highlights on each point:

Earnings Outlook: Rising Rates Put Bite on Small Caps

John Tierney

The large cap S&P 500 and NASDAQ 100 continued their sideways slide last week, dropping about 1.4%. But the small cap Russell 2000 took a harder hit...

Momentum Models Suggest the Increase in Yields Is Far From Over!

Bilal Hafeez, Ben Ford

Momentum models are moving towards our view that GBP/CAD will trade lower over the next six months. They also back our bias to expect European equities to underperform US equities.

  1. Markets to Watch This Week: Euro Area GDP Growth Risks Skewed Lower

    Bilal Hafeez, Viresh Kanabar

    US jobs data took centre stage. Last week, US jobs data dominated the market narrative, with JOLTS (Tuesday) and NFP (Friday) data pointing towards a slower labour market.

  2. Earnings Outlook: Earnings Growth Has Flatlined

    John Tierney

    Equities capitalized on improved labour market news to claw back much of the August selloff. We continue to expect the (Federal Reserve) Fed will err on the side of dovishness and avoiding a hard landing, making a major selloff unlikely.

  3. Prime Trade Ideas: Bullish EUR/USD After Jackson Hole

    Viresh Kanabar

    This month we took a deeper look into private markets, where we have been bearish for most of this year.

Momentum Models Flag US Rates to Underperform JGBs

Bilal Hafeez, Ben Ford

Momentum models back our view to be long 10Y JGBs vs 10Y USTs (target: -400bps) and long EUR/CHF. They also back our bias to expect European equities to underperform US equities. They disagree with our view for GBP/CAD to trade lower over the next six months.

Equity View: What Is the Better Indicator, Headline or Core Inflation?

John Tierney

Inflation may be falling, but few people seem to be paying attention to the wide gap between headline inflation and still-high core inflation. Historically, headline inflation mean reverts back to core inflation, implying the Fed is more likely to raise rates to around 6%.

  1. Markets to Watch This Week: Is New Zealand in a Recession?

    Bilal Hafeez, Viresh Kanabar

    Powell stood his ground at Jackson Hole. Despite speculation and academic calls suggesting otherwise, Chair Powell reiterated his commitment to the 2% inflation target. He also stated that continued strong growth in the US could require additional policy tightening given inflation remains above target.

  2. Earnings Outlook: Economic Data Trumps Earnings This Week

    John Tierney

    Are equities settling into a trading range now, or is the slide set to resume? It depends on the data.

  3. Momentum Models Continue to Expect FTSE-100 Underperformance

    Bilal Hafeez, Ben Ford

    Momentum models are supportive of our hawkish views for both the Federal Reserve and European Central Bank. They also support Ben’s view that there is little reason to turn short EUR/SEK yet.

Markets to Watch This Week: Will Jackson Hole Provide Any Hints on the Fed?

Bilal Hafeez, Viresh Kanabar

Last week, US retail sales beat expectations across the board. Advance retail sales rose +0.7% MoM versus +0.4% MoM expected, while the control group rose +1.0% MoM versus +0.5% MoM expected.

Earnings Outlook: Will Nvidia Live Up to Its Hype?

John Tierney

With equities down 5% or more so far in August, the slow leak is clearly becoming a slide – and a broad-based one at that.

Investing in the Equity Market

  • At Macro Hive, we offer cutting-edge equity research to keep you ahead of the market.
  • Our equity insights primarily cover US stocks on a sectoral basis while our regular reports on earnings give details on individual companies.
  • We also offer insights into European equities.

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.

Our Top Articles on Equities:

Is the S&P 500 a Good Investment?
How Long Will This Bear Market Last?
What Is a Put Option?
What Is a Stock Split?


What is the equity market?

The equity market is a meeting point where investors and other market participants can issue and trade shares of companies. It is also known as the stock market. The trading occurs via exchanges, such as the New York Stock Exchange, or over-the-counter markets.

→ What is equity investing?

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.

→ What are equities in the stock market?

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.

→ What is the market value of equity?

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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