Equity Strategies Group-Level Analysis Of The Equity Markets
How Much Longer Will Consumer Finance’s Run Last?
Twenty eight months after purchase it still ranks Attractive, but the industry fundamentals have changed.
Industry Groups To Avoid
Currently, the Unattractive range of our GS Scores is characterized by two themes, commodity-oriented groups and high dividend groups.
Discrepancies Arise Between December & January
January could be a month that disrupts the current trend, but one month is not enough time to merit a changing of the guard.
GICS Making Changes To Their Structure At Month’s End
GICS recently announced their first revision since June 30, 2010, which goes into effect on February 28th.
Group Scores Worked Well In 2013, What We Like For 2014
All five factor categories did well, and the best performing Attractive industries came from six different sectors and ranged from traditionally defensive to more cyclical groups.
GS Scores in 2014
Looking forward, groups from the Information Technology, Health Care, Consumer Discretionary, and Financials sectors look appealing.
Broad Themes Found In Auto & Insurance Industries
We like when we can find groups inside of broad themes, and these two industries are amongst the strongest in our work right now.
The Stealthy Move In Health Care
Among the few things untouched by the Obamacare rollout are the rising relative strength patterns of most health care stocks.
Education Services Topping Domestic Group Scores
These stocks have been beaten down extensively over the past four years, but they finally appear to be on the road to recovery.
Group Models: Finding Opportunity In Controversy
We like Attractive groups that make us cringe at the thought of potentially purchasing them. We take a peek at three groups - Airlines, Education and Managed Care - where we plugged our nose and bought.
Highlighted Attractive Domestic Groups - November 2013
Multi-Line Insurance, Health Care Equipment, Pharmaceuticals and Automobile Manufacturers.
Tech Sector Looking Healthy - Technology Distributors Purchased
Our quantitative measures for the group and broad sector continue to improve; we think the recent relative turnaround in these stocks is poised to continue.
Supply/Demand Dynamics Drive Three Emerging Market Energy Themes
We find hidden opportunities in Equipment & Services Providers, Coal and Natural Gas. We consider these themes longer term holdings instead of short-term plays
Group Models: Info Tech Tops Domestic, Financials Remain Atop Global
Both models have numerous Information Technology and Financials groups in Attractive territory. Neither model has any Unattractive Tech groups. Alternatively, neither model has any Attractive Utilities groups, while several Utilities rate Unattractive in each.
Life Sciences Tools & Services: Poised For Growth
This group moved back into the Attractive range in September. We like the group’s business model, industry M&A momentum, and stocks’ ability to generate free cash flow. All in all, companies in this group are good candidates for investors hunting for High Quality.
A Checkup On Managed Health Care
Despite continued question marks surrounding the effects of Health Care Reform, sentiment seems to have shifted for the better, and a number of broad industry drivers are trending in a promising direction. This group currently has three categories rating Excellent in our domestic group model.
Select Industries: Minimal Turnover
There was little turnover in the GS Scores this month and no group deactivations. With minimal capital to work with, we added selectively to existing group holdings.
Highlighted Attractive Domestic Groups
Construction & Farm Machinery, General Merchandise Stores, Consumer Electronics, and Home Entertainment Software are the Attractive groups that selected to discuss this month.
The Short Side - Hangs On In September
Our AdvantHedge composite lost 2.6% in September, outperforming the inverse performance of the S&P 500 (+3.0%), the Russell 2000 (+6.4%), and the NASDAQ (+5.1%).
Select Industries: Adding Aerospace & Defense Group
Aerospace & Defense was added to the portfolio this month.
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