Tightening Financial Conditions
Portfolio Pulse from Barry Knapp
The article discusses the current financial conditions, focusing on the rise in 10-year Treasuries and real 10s. It also highlights the impact of the yuan and yen exchange rate weakness on the continuation of the real rate bear yield curve steepening. The article further discusses the potential risks and opportunities in the banking and energy sectors, and the impact of deglobalization on productivity. It concludes with a tactical asset allocation recommendation.
August 24, 2023 | 7:28 pm
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POSITIVE IMPACT
The article suggests an overweight position on UK equities (EWU).
The article suggests that UK equities may present good investment opportunities under current global financial conditions.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The article suggests a focus on Healthcare (IYH) as part of the technology innovation diffusion theme.
The article suggests that healthcare sector may present good investment opportunities due to technology innovation diffusion.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The article suggests an overweight position on credit (LQD) and a potential tactical long in USTs.
The article suggests that credit may present good investment opportunities under current global financial conditions.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The article suggests a long position on RSP (equal weighted S&P) as part of a credit storm tactical trade.
The article suggests that RSP may present good investment opportunities as part of a credit storm tactical trade.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The article suggests a focus on SMH as part of the deglobalization and capital spending boom theme.
The article suggests that SMH may present good investment opportunities due to deglobalization and capital spending boom.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The article suggests an overweight position on US equities (SPY) and a short position as part of a credit storm tactical trade.
The article suggests that US equities may present good investment opportunities under current global financial conditions.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
The article suggests a focus on Industrials (XLI) as part of the deglobalization and capital spending boom and technology innovation diffusion themes.
The article suggests that industrials may present good investment opportunities due to deglobalization and capital spending boom and technology innovation diffusion.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The article suggests an underweight position on Germany (EWG) due to its export-dependent economy.
The article suggests that export-dependent economies like Germany may face challenges due to current global financial conditions.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The article suggests an underweight position on Treasuries (TLT) and a potential tactical long in USTs.
The article suggests that Treasuries may face challenges due to current global financial conditions.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50