In today’s briefing:
- Taiwan Moves to Top Underweight, Tech Overweight Risk
- Q2 Earnings Season = Market Abyss?
Taiwan Moves to Top Underweight, Tech Overweight Risk
- A recent shift in momentum has pushed Taiwan to the largest country level underweight in the Asia Ex-Japan region
- Taiwan Technology stocks have driven allocations lower, in addition to Consumer Discretionary and Staples, Health Care and Financials.
- Taiwan Tech remains the key risk. Sentiment is starting to waver when funds are close to maximum exposure. Underperformance here will be costly on both an absolute a relative basis
Q2 Earnings Season = Market Abyss?
- Investors may face the risk of earnings downgrades as we approach Q2 earnings season, but much of the fundamental weakness may already have been discounted.
- From a chartist’s perspective, the intermediate-term bull case is still intact.
- Both sentiment and technical conditions are still supportive of high stock prices.
Before it’s here, it’s on Smartkarma
