Weekly Macro Themes - Value vs Growth: Bullish value vs growth given improved
This week I covered the following topics/ideas: $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ 100(NDX)$ $Invesco QQQ(QQQ)$ $Invesco China Technology ETF(CQQQ)$ $Dow Jones(.DJI)$
1. China: Remain bullish Chinese stocks given strengthening technicals, cheap valuations, US-China tech rotation, stock vs bond rotation, less-bad earnings/macro pulse, and scope for stimulus.
2. Emerging Markets: Remain bullish given strengthening technicals (especially EM ex-China), promising big picture long-term view, cheap valuations and still skeptical sentiment.
3. Value vs Growth: Bullish value vs growth given improved short-term technicals, positive longer-term technicals, cheaper than usual relative value (and risky high absolute valuations for growth).
4. Defensives: Remain bullish defensive value stocks given historically light allocations, extreme cheap relative valuations, and improving technicals as tech tops.
5. Japan: Bullish Japanese equities given much improved macro/fundamentals, cheap valuations (+macro impetus for re-rating), and still skeptical sentiment among global investors.
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