JPM on the tactical rally in Cyclicals and in Value style, driven by an expected upmove in PMIs in May/June
“We think the rotation, which appears to have started last week, will have some legs as the investor positioning was very defensive – 70% of the equity funds that we track in Europe have been outperforming the benchmark as of end April, by 1…[Read more]

BofAML Michael Hartnett: In the past 8 weeks central banks have been buying $2.4bn per hour of financial assets. This will “fade” to $608mn in coming weeks….

#Buffett still king? Berkshire’s SEC filings, 3 biggest recent investments

1. Kraft Heinz
2. Occidental Petroleum
3. Airline stocks
4. Lost ~ $7.4 billion combined.
5. Investment of roughly $10 billion in each.
6. Airlines “a death trap for investors.”

Deutsche Bank: “The scale of the economic shock in Q2 looks much deeper than we originally estimated and despite the emergence from lockdown the return to pre-virus levels of activity is now expected to take longer”

MS Cross Asset Strategist, Andrew Sheets teaches bears to love the “U”

“…while we frequently hear that the market isn’t prepared for a slow, ‘U-shaped’ recovery, we would be more relaxed: After all, a ‘U’ implies that the worst is behind us, and the rate of change is positive. History suggests that markets routinely look ahead. And for all t…[Read more]

U.S./China trade: Beyond the first order impact, the market is also likely to think about the possible retaliation from China on US companies. From a tech perspective, Apple could be the primary target, although we believe that Apple’s supply chain presence (employing 1-1.5M people in China) may preclude such an action. Given the current e…[Read more]