Weekly Macro Themes - Small vs Large, Value vs Growth
This week I covered the following topics/ideas: $S&P 500(.SPX)$ $NASDAQ(.IXIC)$ $SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ $DJIA(.DJI)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$
1. GSV vs ULG: Global Small Value (GSV) continues to trade near-record cheap relative valuations vs USA Large Growth (ULG), but there are some nuances to this key theme.
2. Global vs US: Wary of false dawns, but see tentative turn in technicals, a path to more promising fundamentals, against an as ever compelling valuation backdrop.
3. Small vs Large: Small caps are cheap vs history, cheap vs large caps/big tech, and under-allocated, while a credible macro scenario could see sector skews give a big help to small caps.
4. Value vs Growth: The cheaper end of the market is cheaper than usual vs the expensive end, but are not outright cheap. This leaves 2 paths: catch-up (cyclicals up) vs catch-down (defensives holding ground).
5. NZ Equities: Valuations have reset and dividend yields rebounded, and KiwiSaver flows remain important, but high rates remain a hurdle (especially as the housing market rebounds).
https://www.topdowncharts.pro/p/weekly-macro-themes-preview-26-april
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