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  1. Momentum Model UST Bearishness Increases

    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. Equities fared best (+0.3% WoW), then rates (+0.1%). FX (-0.2% WoW) underperformed. Equity momentum models remain the best-performing model over a three-month timeframe (+5.5%). […]

  2. Equities and the MacroSphere: Nvidia Week Begins!

    John Tierney

    Summary We expect equities to settle into a trading range after last week’s hot CPI and PPI reports until investors develop new conviction about the timing of rate cuts. Both Adobe and Alphabet sold off last week on reports that OpenAI is now targeting Google Search and Adobe’s Creative Cloud. Clearly, the potential for AI-driven […]

  3. Momentum Models Turn Heavily Bullish USD/JPY

    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 added to last week’s gains, up +0.4% WoW. Equities fared best (+1.2% WoW), then rates (+0.3% WoW) and FX (+0.1% WoW). Equity momentum models are the only positively performing model […]

  1. Office CRE Confronts the Rise of Hybrid Work

    John Tierney

    Summary The recent New York Community Bank (NYCB) blowup has brought renewed focus on bank exposure to commercial real estate (CRE). It is a potential problem – banks hold about 50% of CRE debt. Fortunately, the risk is distributed across some 5,000+ mostly small banks that serve local markets. More bank failures and mergers are […]

  2. Equities and the MacroSphere: Big Caps Rip, Smaller Caps Mark Time

    John Tierney

    Summary What matters more – that the major indices keep breaking records or that smaller caps are going nowhere fast? On balance, we remain marketweight equities. Earnings reveal American luxury goods sales are booming in China – but less so industrial goods. Media companies reported a slowdown in advertising and travel companies saw softening bookings […]

  3. Momentum Models Add to EUR/USD Bearishness

    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 reversed last week’s losses, up +0.2% WoW. Equities fared best (+0.4% WoW), then rates (+0.2% WoW). Equity momentum models are the only positively performing model over a three-month timeframe (+4.8%). […]

Equity View: What Is Booming in the AI Ecosystem (and What Is Not…)

John Tierney

Summary AI may be the hottest show in town (after Taylor Swift), but much of ‘Corporate America’ appears in no hurry to book tickets – as in ramping up AI-related investment. That will likely be a 3-5-year process. Still, many companies that provide AI infrastructure have handily outperformed the NASDAQ 100 (NDX) index over the […]

Markets to Watch: Will the Fed React to CPI Revisions?

Bilal Hafeez, Viresh Kanabar

Summary In the US, Friday brings seasonal factor revisions to the CPI. These could impact the path of the FFR. Currently Powell seems set on no rate cut in March. Europe and the UK hear from central bank policymakers and see several key surveys updated, including the services PMIs. Elsewhere, a slew of central bank […]

  1. Equities and the MacroSphere: Are Valuations Outrunning Earnings?

    John Tierney

    Summary The economy is starting 2024 with a bang – but company earnings reports show that weak spots remain in industrials and commodity chip makers. Another cautionary note is that the small cap Russell 2000 remains 5% below December highs even as the S&P 500 (SPX) and NASDAQ 100 (NDX) bump up against all-time highs. […]

  2. Momentum Models Turn Heavily Bullish GBP/USD – We Disagree

    Ben Ford, Bilal Hafeez

    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 reversed last week’s gains as they declined -0.2% over the past week. Rates fared worst (-0.4% WoW), while equities followed (-0.2% WoW). Equity momentum models are the only positively performing […]

  3. Equities and the MacroSphere: Will Earnings Support the Tech Rally?

    John Tierney

    Summary We see little sign that the year-long slump in the industrial sector will lift in coming months. Commodity tech companies, rail companies, and materials suppliers mostly report tepid demand for their products. One bright spot is consumer staples, where major companies report robust outlooks on rising prices and volumes. Tech companies plugged into the […]

Markets to Watch: Bonds Beware as QRA Emerges

Bilal Hafeez, Viresh Kanabar

Summary In the US, the Fed meets on Wednesday. We expect them to hold rates steady while preparing markets for a cut in March. In the UK, the BoE will likely hold rates unchanged on Thursday, taking a more dovish profile in the near term. January CPI is the main release of the week for […]

Bilal’s Macroscope: The Private Equity Party Is Over

Bilal Hafeez, Viresh Kanabar

Summary Private Equity (PE) exits in the US fell 26% last year, resulting in a collapse in distributions paid to investors. Despite this, SWFs, Endowments, and other LPs continue to suggest increasing allocations to PE in the coming years. PE managed to immunise their PortCos against higher rates, but PE returns have underperformed public market […]

  1. Equity View: Is Russell 2K a Buy or a Hold?

    John Tierney

    Summary After a brief pause after the New Year, the S&P 500 and NASDAQ 100 resumed rallying. But the Russell 2000 has slumped 6%. We have been enthusiastic cheerleaders for the R2K since November, arguing it is still pricing in a recession even as 2024 recession risks have receded. We will favour R2K over the […]

  2. Momentum Models Pare USD/JPY Bullishness

    Ben Ford, Bilal Hafeez

    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 inched +0.2% higher over the past week as equities outshone mixed outings in rates and FX. Equity momentum models are the only positively performing model over a three-month timeframe (+4.0%). […]

  3. Equities and the MacroSphere: Kudos for SPX – But Do Not Get Giddy!

    John Tierney

    Summary Kudos to the S&P 500 (SPX) for scoring a new high and ending a two-year bear market. But do not look for more onward and upward anytime soon. Industrial bellwethers Fastenal and JB Hunt delivered good results – but more because of company-specific factors than a pickup in economic activity. Regional banks are still […]

Charts of the Week: Bearish JPY, Short CNH, and Fading the UK Inflation Beat

Matthew Tibble

Summary Two factors support our bullish USD/JPY call: weak Q1 seasonals for JPY, and Japan’s cyclical downturn. China faces a supply-demand imbalance preventing inflation from returning to positive territory. UK inflation remains below BoE forecasts despite the recent beat. Equities are trading at historically high P/E valuations, which could depress returns in 2024. Market Implications […]

Equity View: Will a Sluggish GDP Outlook Hurt Equity Returns?

John Tierney

Summary Economists project real GDP growth for 2024 around 1.5%, while analysts expect the S&P 500 (SPX) to be up 6.5-8% on an 11% rise in earnings. That seems incongruous, but history suggests that there is little relationship between GDP growth and equity returns. For what it is worth, equity returns have skewed either high […]

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?

FAQ:

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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