Outperformance of Procyclical Styles – Current Rotation vs. History
Outperformance of Procyclical Styles – Current Rotation vs. History Investors are pricing a cyclical recovery. Image: Morgan Stanley Research
S&P 500 GICs Level 1 Sector Weekly Relative Rotation Graph
S&P 500 GICs Level 1 Sector Weekly Relative Rotation Graph Technology and discretionary are weakening. Industrials and materials are leading. Financials, utilities, staples, health care and real estate are improving. Energy and communication services are lagging. Image= BofA Global Research
Bond Yields and Rotation Trade
Bond Yields and Rotation Trade Higher yields are good news for investors. According to BofA, the bull story next year is a reopening rotation story. Image: BofA Global Investment Strategy
Rotation – US vs. non-US Equities, S&P Growth vs. Value, S&P Cyclicals vs. Defensives
Rotation – US vs. non-US Equities, S&P Growth vs. Value, S&P Cyclicals vs. Defensives Is the rotation into value, cyclicals and non-US equities inevitable? Image: J.P. Morgan
Rotation vs. U.S. GDP Growth Forecasts
Rotation vs. U.S. GDP Growth Forecasts Chart suggesting that the rotation out of bonds into equities, out of growth into cyclicals, out of large caps into small caps, and out of gold into copper, is expected to continue in 2020. Image: Fidelity Investments
Momentum to Value Rotation
Momentum to Value Rotation The rotation into value suggests a rebound in global economic growth, not a recession. Image: BofA Merrill Lynch US Equity & US Quant Strategy
Rotation from U.S. Stocks to Rest-of-World
Rotation from U.S. Stocks to Rest-of-World The rotation from U.S. stocks to cheaper global stocks continues, reaching $123 billion recently. Image: BofA Merrill Lynch Global Investment Strategy
Rotation from Safe to Risky Assets
Rotation from Safe to Risky Assets The market is rotating. The chart clearly shows the big rotation taking place from “safe” to “risky” assets since mid-August 2019. Image: Goldman Sachs Global Investment Research
S&P 500 and Seasonal Rotation Strategy
S&P 500 and Seasonal Rotation Strategy Sell in May and go away? This chart suggests that a rotation between defensive and cyclical sectors was a much better strategy Image: CFRA, S&P Global
Performance – Dogs of the Dow vs. S&P 500 from the 2020 Low
Performance – Dogs of the Dow vs. S&P 500 from the 2020 Low The Dogs of the Dow (10 highest yielding stocks in the Dow Jones) are lagging the S&P 500 from the March low. Bullish rotation into lagging names is needed for the Dow Dogs to outperform the S&P 500 this year. Image: BofA…