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Feb 11
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LONG
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Brian Belski
Investment Committee Member
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"We're in the process of transitioning... from a momentum multiple driven market to an earnings driven market... Other areas of the market are working: Dividend Growth, Value, Small Cap." As the bull market matures (Year 4), price appreciation will no longer come from PE expansion (hype) but from actual earnings delivery. Since Small Caps and Value have lagged, capital will rotate there as they gain earnings credibility. LONG. Focus on Dividend Growth and Small Cap sectors as the market broadens. If rates stay persistently high, Small Caps (which are rate-sensitive) may struggle to finance growth. |
CNBC
Here's how to trade around the hot jobs repor...
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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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Feb 09
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LONG
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Peter Boockvar
Chief Investment Officer, BFG Wealth Partners
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While Big Tech creates the tools, the rest of the US market (Value stocks) are the customers. For the tech sector to succeed, they must sell their products to traditional industries. As traditional companies integrate new technology, they become more efficient and profitable, boosting their earnings and stock prices. The rotation is moving away from pure tech creation toward tech adoption in the broader economy. Failure of traditional companies to effectively integrate new technologies. |
CNBC
Dollar weakness was a major catalyst for glob...
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Feb 08
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SHORT
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Bob Elliott
Substack author, Nonconsensus
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Bob Elliott observes that "momo favorite software stocks implode and old school value companies surge." This indicates a significant and ongoing market rotation away from high-growth, high-multiple software companies towards more fundamentally sound, potentially undervalued "old school value" companies. This trend, if sustained, offers a relative value opportunity. Initiate a pair trade: Short an ETF tracking software or growth stocks (e.g., IGV, ARKK) and Long an ETF tracking value stocks (e.g., RPV, VTV). The rotation could reverse quickly, driven by a renewed appetite for growth or a broader market downturn that impacts all equities. Value stocks could become overbought. |
Nonconsensus
The Week Ahead 2026.02.08
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