What The Equity Bulls Need For The Next Phase
Cam Hui | Apr 07, 2014 12:12AM ET
In a recent post, It IS about the risk premium! ). On the other hand, top-down fundamental macro indicators are turning to a capex revival (notwithstanding Andrew Lapthorne's objections). What's more, Mr. Market's expectations are similar to those of the Street's capex bulls.
I am not sure. That is why it is important to closely monitor the tone of the capital goods companies' upcoming earnings reports. Either capex intentions live up to expectations and the bull market continues to charge ahead to further new highs, or we see disappointment. In that case, the relative performance of XLI and CYC would roll over - which will be a signal that the bears have taken charge of the tape.
Disclosure: Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. (“Qwest”). The opinions and any recommendations expressed in the blog are those of the author and do not reflect the opinions and recommendations of Qwest. Qwest reviews Mr. Hui’s blog to ensure it is connected with Mr. Hui’s obligation to deal fairly, honestly and in good faith with the blog’s readers.”
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