Research

Despite a recent rotation into lower volatility sectors, Utilities remained the laggard in the cohort as higher rates have been a headwind.

Mega Cap. weakness has been a persistent headwind to the sector in 2026. META, NFLX and DIS continue to be a drag.

Staples stocks outperformed during the AI momentum unwind, but we’re expecting rotation to more offensive exposures moving forward.

Materials stocks finished July on a strong note, but we need to see more improvement to gain bullish conviction.

Healthcare stocks have rallied over the past 2-months. We’re paring back long exposure at near-term overbought conditions.

AMZN’s strong quarter has a chance to cast the sector in a new light, but inflation pressures and higher rates have kept the pressure on.

While the Middle East conflict carries on, covering Energy exposure is a prudent hedge.

Real Estate stocks have firmed and could continue to benefit from duration aversion in the fixed income market.

AI and Energy are both potential tailwinds for the sector as long as confidence in the business cycle remains firm.