Country rotation is separating AI earnings strength from energy costs and political risk. We favor Taiwan and Japan, add Switzerland for balance, and approach Brazil selectively ahead of its runoff. Korea’s retreat shows why strong exports alone cannot justify buying.
World-Wide Wednesday: Country Rotation Is Becoming a Sector Decision Read More »
AI and Growth are correcting, but employment, business surveys and broad credit markets still favor economic expansion. Weak hiring and persistent inflation warrant caution. Favor balanced sector exposure while watching whether financing stress spreads into orders, layoffs and earnings revisions.
COMMENTARY: The S&P 500 declined 1.95% for the week ending October 16, as renewed inflation concerns and a sharp technology sell-off weighed on investor sentiment. The Nasdaq Composite fell approximately 4.5%, marking its worst weekly performance since June, while the Dow Jones Industrial Average gained ground as investors favored more defensive areas of the market.
Weekly Performance Summary: October 16th, 2026 Read More »
Energy and Technology dominate sector performance as inflation and AI investment reshape equity leadership. But rising financing costs threaten speculative growth, while free-cash-flow strategies strengthen. Factor signals increasingly favor profitable businesses capable of funding expansion without relying on inexpensive credit.
Factor Friday: The AI Trade Meets Its Cost of Capital Read More »
Country ETF flows reveal a selective international rotation: investors are accumulating Japan, Switzerland and Canada, taking profits in South Korea, and chasing Brazil’s election rally. Taiwan’s AI exposure remains attractive, while China, India and Europe’s fiscal risks warrant greater caution.
World Wide Wednesday: Buying Weakness, Selling Strength—and Choosing the Right Countries Read More »
COMMENTARY: The S&P 500 gained 0.48% for the week ending October 9, as investors balanced optimism surrounding the upcoming third-quarter earnings season against concerns about inflation, rising interest rates, and geopolitical uncertainty. Utilities, consumer staples, and energy led sector performance, reflecting demand for defensive investments and renewed interest in energy producers. Meanwhile, technology and communication
Weekly Performance Summary: October 9th, 2026 Read More »
AI infrastructure earnings continue to accelerate, but rising financing costs and uneven growth outside Technology are reshaping equity leadership. Factor performance reveals investors favoring high beta and select Value exposures while inflation and bond volatility threaten broader market participation.
The S&P 500 enters the new week near an all-time high, but the headline index is increasingly masking a much weaker market underneath. The attached long-term breadth chart shows the S&P 500 near 7,723 and still comfortably above its 50-day and 200-day moving averages, while only about 24% of stocks are above their 50-day moving
Narrations of a Sector ETF Operator: The Index Is Fine. The Market Underneath It Is Not. Read More »
COMMENTARY: The S&P 500 declined 0.27% for the week ending October 2, as a strong Friday rally was not enough to offset earlier losses. Investors balanced a weaker-than-expected September employment report against elevated Treasury yields and continued concerns about economic growth. Employers added just 29,000 jobs in September versus expectations of roughly 90,000, while unemployment
Weekly Performance Summary: October 2nd, 2026 Read More »
Equities and bonds are pricing different vulnerabilities. This morning’s headlines highlight rising borrowing costs, energy inflation and emerging credit-market friction, yet Technology, Momentum and High Beta are strengthening together. Investors appear to expect AI-related earnings growth to outweigh tighter financial conditions for a narrow group of beneficiaries. That supports market leadership without establishing a broadly favorable economic backdrop.
Factor Friday: Growth Wins the Earnings Argument as Bonds Raise the Discount Rate Read More »
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