Daily BriefsMacro

Macro: How to Trade the Seasonal Melt-Up and more

In today’s briefing:

  • How to Trade the Seasonal Melt-Up
  • What’s Wrong With Value Stocks?
  • Record MENA Underweight

How to Trade the Seasonal Melt-Up

By Cam Hui

  • The S&P 500 is attempting an upside breakout from a narrow trading range.
  • The market is facing a number of negative divergences which could be cautionary signals for investors.
  • Investors should monitor the market for a loss of momentum, and a decisive violation of small-cap support, which would be cautionary signals to de-risk portfolios.

What’s Wrong With Value Stocks?

By Cam Hui

  • Value isn’t following the script of the NASDAQ Bubble Crash, when they recovered strongly relative to growth.
  • Large-Cap factor calculations were distorted by the strong performance of heavyweight Tesla, whose share price has risen strongly to affect factor returns,
  • A growing belief in stagflation characterized by slowing growth and rising inflation has boosted growth stocks at the expense of the value style.

Record MENA Underweight

By Steven Holden

  • MENA stocks hit record underweight among active Emerging Market managers
  • Only half of active managers have exposure to the region, less than 3% overweight.
  • Al Rajhi Bank is the investor favourite, though all stocks remain underinvested vs benchmark

Before it’s here, it’s on Smartkarma