|
Feb 17
|
|
—
|
LONG
|
Memani
Investment Strategist / CIO
|
"If you look at cyclicals, they aren't as... high multiple as they should be... stabilization of the economy probably helps those types of assets." Cyclicals have been priced for a recession that isn't happening. As the market accepts the "soft landing" reality, the discount applied to these sectors will vanish, leading to repricing higher. LONG CYCLICAL STOCKS to capture the valuation gap as economic fear subsides. Economic growth stalling (recession) would hurt cyclicals most. |
Bloomberg Markets
Memani Says the Soft Landing Is Arriving
|
|
Feb 13
|
|
—
|
LONG
|
Jim Paulsen
Former Chief Investment Strategist, Paulsen Perspectives
|
Paulsen states the economy is at "stall speed" (real GDP ex-trade is weak) and the job market has flatlined. He notes money supply is picking up, the dollar is falling, and the yield curve is steepening. The Fed will be forced to ease aggressively to prevent a recession. Historically, a backdrop of Fed easing, a lower dollar, and a steepening curve triggers a rotation away from crowded "New Era" growth stocks (Tech/AI) into neglected "Old Era" assets (Small Caps, Cyclicals, International). Long exposure to sectors that benefit from liquidity injections and a weaker dollar. If Zandi is right and inflation remains sticky at 3%, the Fed may not be able to ease as quickly as Paulsen expects. |
CNBC
The economy overall is weaker than widely ant...
|
|
Feb 11
|
|
—
|
LONG
|
Stuart Kaiser
Head of US Equity Trading Strategy, Citi
|
Investors have been selling Large-Cap Growth and rotating into Value/Cyclicals since November. The economy remains solid (GDP tracking well), and positioning in Large-Cap Tech is still massive (2-5 year build-up). The rotation has space to go as investors seek exposure to the physical economy and stimulus. LONG Cyclicals as the rotation continues. A sharp deterioration in labor market data (though the 130k print mitigates this). |
Bloomberg Markets
Bloomberg Surveillance 02/11/2026
|