cyclicals
- Technical Strategy
Watch for Cyclicals bottoming for sign of new up cycle
You have to be impressed by the persuasive power of price movement on sentiment and headlines. I’m obviously just a bit biased, but the sudden reversal from bearish to bullish headlines only reinforces the importance of including technical analysis in one’s investment process. Why? Well, despite the short-term wiggles that...
- Tom Lee's Equity Strategy
Don't Panic Over Yield Inversion; US Stocks Attractive
The headlines and TV pundits have been screaming about the terrors of the inverted yield curve. After the yield on the 2-year U.S. Treasury note rose above the 10-year last Wednesday, a mini-panic ensued. Equity markets fell about 4% at one point after the 2-yr-10-yr US yield curve went negative,...
- Technical Strategy
Swap Exposure to Cyclicals From Safety Stocks...NOW
It’s time for investors to position their portfolios for the change in leadership just beginning to take hold, and this means increasing exposure to the right sectors and groups in 2H19 and well into 2020. There is a burgeoning evidence of a market rotation away from safety stocks, such as...
- Tom Lee's Equity Strategy
Let's Get Cyclical; Cyclicals Respond to Long Term Yield Curve Steepening
Those scary words “yield curve inversion” are being bandied about in the headlines by the press these days. Bad news sell papers, of course, but prudent investors should look beyond the headlines. The latter often don’t do justice to the phenomena supposedly being explained. What part of the Treasury yield...
- Tom Lee's Equity Strategy
Non-Consensus View: Cyclical Stocks Should Come Alive
The market consensus is sometimes correct but sometimes wrong. I like to push against the consensus. Not only is it intellectually stimulating, but when the consensus is wrong investors can do well by using a contrarian approach. Currently, for example, the central thesis of market skeptics is that numerous political...
