Earnings Revision Work Says Buy The Dip on Cyclicals Array ( [cookie] => 596a25-805399-724db3-06fc84-1cfaa6 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 208285 [user_id] => [reason] => [method] => ) 1 and can accesss
The S&P 500 is at all-time highs above 4000 and has rallied nearly 90% off its low of 2191 reached on 3/23/20. It has certainly been a year filled with lots of challenges for everyone, both personal and professional. As the market looks poised to continue higher as the U.S. economy is beginning to reopen and begin its recovery, I find it quite interesting that there is such a plethora of pessimism and concern from both our clients and from many forecasters. During the entire rally, there have been many different bearish concerns that the pessimists have kept agitating about. In my view, equities have been following the age-old Wall Street expression of “Climbing the Wall of Worry”. Over the past couple of weeks, the latest worry that appears to have surfaced is that investors and forecasters are selling their Value/Cyclicals/Recovery/Reflation positioning and shifting towards quality defensive growth. I have heard our clients express these concerns and the arguments from competitors to support this view, and I have a response to this suggested shift — with a high level of conviction that is based on my proprietary research process, my work does NOT support these conclusions AT ALL. With that being said, my work strongly suggests
The S&P 500 is at all-time highs above 4000 and has rallied nearly 90% off its low of 2191 reached on 3/23/20. It has certainly been a year filled with lots of challenges for everyone, both personal and professional. As the market looks poised to continue higher as the U.S. economy is beginning to reopen and begin its recovery, I find it quite interesting that there is such a plethora of pessimism and concern from both our clients and from many forecasters. During the entire rally, there have been many different bearish concerns that the pessimists have kept agitating about. In my view, equities have been following the age-old Wall Street expression of “Climbing the Wall of Worry”. Over the past couple of weeks, the latest worry that appears to have surfaced is that investors and forecasters are selling their Value/Cyclicals/Recovery/Reflation positioning and shifting towards quality defensive growth. I have heard our clients express these concerns and the arguments from competitors to support this view, and I have a response to this suggested shift — with a high level of conviction that is based on my proprietary research process, my work does NOT support these conclusions AT ALL. With that being said, my work strongly suggests that any recent relative bounces in quality/defensive/growth should be SOLD and dips in Value/Cyclicals/Recovery/Reflation should be BOUGHT.
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