With ZION, WAL and FHN in the news for the wrong reasons today, we should revisit the relationship between banking stress and the AI trade which has grown to the point that it influences the primary trend for equity prices when it comes under pressure. Financial stress in the U.S. banking system tends to ripple […]
Factor Friday: Will Bank Stress Impact AI Leadership Dynamics? Read More »
October 3, 2025 Equities continue to push higher as the calendar has flipped to October. The AI trade remains ascendant amidst a backdrop of an easing Fed, moderating rates and continued firm investor risk appetite. It should be no shock then that in 2025, high-beta stocks have strongly outperformed low-volatility names. We go a bit
Factor Friday: Can High Beta Going Higher? Read More »
September 26, 2025 We’re going to keep it brief this week. Moderating economic data, investor enthusiasm for AI and AI infrastructure plays and a supportive Federal Reserve have kept tailwinds behind Growth stocks. Large/Mega Growth vs. Value The Value trade is likely to continue to struggle while interest rates are trending lower. Since the last
Factor Friday: The Value Trade is About Rates Read More »
September 19, 2025 Equities are at all-time highs (yet again) and the Fed has begun lowering interest rates with the goal of supporting employment. Investors continue to discount positive outcomes from Fed policy and on global trade as they bid both US and ex-US equities to fresh highs. Skepticism regarding the AI trade has given
Factor Friday: Growth Remains in the Driver’s Seat Read More »
September 12, 2025 With the S&P 500 printing its latest all-time high yesterday and consensus now firm on Fed policy, it’s an excellent time to survey our factor charts to gage potential opportunities into year end. What has been clear since equities put in their April 7th low is that investor risk appetite has continued
Factor Friday: Will Fed Easing Animate the Value Trade? Read More »
August 22, 2025 To put it as simply as possible, Tech sector shares are correcting from near-term overbought territory after a strong thrust off the April lows. To tip our hand on the punch line, it’s too early to tell if you should go into the bunker for a while. However, it is clear that,
Factor Friday: Growth Correction Read More »
August 15, 2025 The S&P 500 continues to sit at or near all-time highs despite some clear challenges to economic activity and input price levels. We want to take this time of relative calm to talk about how to get high dividend exposure as a sector investor. The highest yielding sectors have been structural laggards
Factor Friday: Sources of Dividend Income Across Sectors Read More »
July 25, 2025 The more things change, the more they stay the same. Global trade realignment continues to shape the narrative around the business cycle, but despite more reasons to worry about inflation, CPI and interest rates have continued to show softness. The US 10yr yield is ticking down to long-term support (chart below) despite
Factor Friday: Back to (New) Normal Read More »
July 18, 2025 Big Tech is dead…Long live Big Tech! Recent export concessions for NVDA have sparked renewed buying in Large Cap. Tech and Growth names more broadly. This is shaping the US equity market’s leadership profile in a way that’s eerily similar to 2023. We can see in our Growth/Value chart below that Growth
Factor Friday: Large Cap. Tech Reasserting Its Dominance Read More »
July 11, 2025 Interesting things are happening now that the S&P 500 is out to new all time highs having put the global trade war correction in the rearview mirror. The bull trend that began in early 2023 lives again, but we are seeing changes in the leadership profile of the US equity market from
Factor Friday: Shall the Meek Inherit the Earth? Read More »
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