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Feb 11
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LONG
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Stuart Kaiser
Head of US Equity Trading Strategy, Citi
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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
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Feb 09
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LONG
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Peter Boockvar
Chief Investment Officer, BFG Wealth Partners
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Markets that were written off as "uninvestable" or suffering from "self-immolation" (like Germany's energy policy or China's regulatory environment) reached rock-bottom valuations. This is a pure valuation play. When a market trades at 8x earnings, it does not need a booming economy to generate returns; it only needs conditions to get "less bad." Moving from a P/E of 8x to 12x results in a 50% profit, even without massive innovation. Germany boomed despite poor energy policies because it started at 8x earnings. Hong Kong went from "uninvestable" to a top performer because prices were too low. Structural economic issues in these regions could worsen, preventing the valuation reset ("value trap"). |
CNBC
Dollar weakness was a major catalyst for glob...
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