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Automotive Retail improved into the top five rankings; Biotechnology, despite being out of favor, has both long-term growth potential and higher profitability than Pharmaceuticals; Developed Diversified Banks is up almost 20% since the election.

We take a deeper dive into Hotels & Leisure’s GS Score and fundamental industry drivers to explore what the group has to offer above and beyond its membership in the “Trump Trade” trend.

As we get further into the era of Trump, it will be interesting to see how the market balances anti-immigration and anti-free trade policies with deregulation and tax reform.

Growth stocks scored a modest win over Value in January. This broke impressive streaks of Value domination—Growth’s last win in the Mid Cap space was last June.

After spiking higher in December, our Ratio of Ratios settled closer to its long-term average in January (thanks, in part, to relative underperformance in the Small Cap space).

Building on the momentum of the past few quarters, our “one-month” Q4 ratio sits comfortably above its historical mean for the first time in seven quarters.

After the big supply last month, we believe there is more room for spreads to narrow.

This new signal is mostly due to a much lower reading three months ago.

The market seemed hesitant to push the Trump trade any farther as new policies have focused on trade renegotiation and immigration, the less positive part of the policy package.

While factors do offer excess return they are by no means winners in all seasons. Our findings show that factor returns are cyclical, volatile, and unstable over time.

The Major Trend Index stabilized in a moderately bullish range during the past several weeks.

The S&P 500 gained 1.9% in January. Based on the 1957-to-date valuation metrics presented, the potential downside compared to its historical average remained the same as last month’s reading (-21%).

Herein we provide a year-end update on the factors we determined were important to the active/passive relationship. We found that the market environment and the success of active managers changed significantly in late 2016.

The MTI was roughly flat during January and remains safely in the positive range. Accordingly, equity exposure is positioned at 65%, near the high end of our bullish range of 50-70%.

We think that stocks in Trump’s current term will fall short of Obama’s gains, mostly reflecting a valuation starting point that’s almost twice as high as Obama’s was. “Managing expectations” doesn’t seem like Trump’s style, but in the case of the stock market it might not be a bad idea.

The Major Trend Index stabilized in a moderately bullish range during the past several weeks, yet the Momentum/Breadth/Divergence category is almost the sole carrier of the bullish torch.

The S&P 500 trailing P/E has just climbed above 25x—lower than in March 2009—but incredibly high for any period in which earnings weren’t tainted by recession.

Veteran market analyst Bob Farrell reminds investors that when parabolic uptrends eventually stop, the next move is never sideways. We don’t know that the Dividend Aristocrats and other bond-like stocks traced out a true parabola into last summer’s peaks, but the ugly aftermath suggests they probably did.

The sell-off into last February’s low did not qualify as a bear market, but subsequent action—including the mayhem in “factor-land”—certainly suggests it was a very significant “psychological” low.

Tallying the overseas cash pile, predicting how much may be repatriated, and the potential impact on stock performance are challenging undertakings, which require more art than science.