January 3, 2020 – With global growth showing signs of bottoming and trade tensions seemingly receding, we believe that the time is ripe to favor more cyclical sectors, poised to benefit from an upswing in economic activity. The energy sector falls under the cyclical umbrella, and with low valuations and a healthy 3.9% dividend yield versus the S&P 500’s 1.
December 20, 2019 – U.S. equities have had a strong run in 2019, with the technology sector up even more. As we look into 2020, we expect technology companies to remain caught in the middle of a tug-of-war between productivity and populism. However, a tight labor market, along with the secular shift toward artificial intelligence and cloud computing, should allow tech stocks to overcome political headwinds. We still see opportunity and are overweight technology in our sector strategy.
December 17, 2019 — For the second time in as many months, we have increased our allocation to equities in response to a more optimistic outlook and a clear reduction in macro risks. Our outlook for domestic and global growth is more positive than just a few months ago when global manufacturing and trade were in stark decline and threatened to drag major economies inexorably downward toward recessions.