Vermilion Int'l Compass: Global Equity Strategy
MSCI EAFE With Major Long-Term BreakoutThe MSCI EAFE index has finally joined the all-time high breakout party, following in the footsteps of the other major global indexes (MSCI ACWI, ACWI ex-US, and EM). For the MSCI EAFE index (local), this is a major breakout above 14-year resistance, and is something we view as a sign that global equities have much more room to run... see chart below. We remain bullish on global equities and we continue to recommend adding exposure on pullbacks.
· Focus On Emerging Markets, Hong Kong, & Japan. Despite the MSCI EAFE index breaking out to new all-time highs, it is not yet leadership; that title is still reserved for emerging markets (MSCI EM), where we continue to recommend an overweight allocation. We also want to be adding exposure on pullbacks to Hong Kong's Hang Seng, which remains on a tear since we suggested buying the breakout topside the long-term downtrend in our January 7th Int'l Compass. RS for the Hang Seng has the look of a major bottom as well. Lastly, Japan (Nikkei 225, TOPIX) continues to be another attractive country where we recommend adding exposure on pullbacks... see page 2.
· Actionable Themes: Energy & Financials. With interest rates rising globally, value areas are the clear beneficiary. At the very least, rising rates has leveled the playing field between growth and value. In today's report we cover two historically value-oriented Sectors -- Energy and Financials. We continue to recommend an overweight allocation to Energy, and we are still market weight on Financials. In today's report we highlight actionable ideas within these two Sectors -- add exposure... see pages 3-17.
Canadian Natural Resources is an independent crude oil and natural gas exploration, development and production company. Co.'s exploration and production operations are focused in North America, largely in Western Canada; the U.K. portion of the North Sea; and CA'te d'Ivoire, Gabon, and South Africa in Offshore Africa. Co. had total proved reserves of 5.71 billion barrels of oil equivalent. Co.'s gross proved crude oil, bitumen (thermal oil), synthetic crude oil and natural gas liquids reserves totaled 4.70 billion barrels and its gross proved natural gas reserves totaled 6,106.00 billion cubic feet.
Vermilion Research delivers timely, actionable, and unique research inputs to professional investors. Our research strategists highlight securities which we believe are at major inflection points, based on our various proprietary technical indicators, and offer asymmetric risk/return profiles. We believe our research methodology, which is not limited by industry sector or market capitalization, enables us to deliver superior investment recommendations.
Our process begins by organizing all actively traded stocks into coherent sectors, then into logical industry groups. We then apply our proprietary relative strength tools to identify developing price trends. Once attractive trends are identified within a selected sectors or groups, we screen for individual stocks which we believe offer the best risk/reward profile. Vermilion offers U.S. and global equity market research products. Vermilion’s research team, which has received numerous awards and accolades, has a combined 70 year of experience in the analysis of investment securities.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.