Another STRONG ISM report … fitting perfectly in line with our models. ISM New Orders now above 60 for a 15th consecutive month! Buy these dips, don’t get defensive until 2022 when PMIs finally do ROLL OVER!! More PMIs charts are coming your way this weekend. Stick with stocks with improving EPS...

Junk outperforming on a down day?! Buy GOOD FUNDAMENTALS on this dip, not JUNK. Another indicator that shows lower PMIs and EPS throughout 2022 Waking a sleeping earnings-giant: EPS revisions just starting to wake up after 3+ years of stagnation. It’s a down day for equities, and the S&P 500...

This Has Been A Blowout Year For Earnings. Estimates Surged Higher All Year And Are Just Recently Beginning To Stabilize. We Are Seeing The Strongest NTM Earnings Growth On Record! There Are Just A Handful Of Industries Whose NTM Earnings Are Still Below Pre - Covid Levels. (Scroll down for the...

My wife and I have been glued to the TV before bed, watching Grace and Frankie, a popular Netflix show starring Jane Fonda, Lily Tomlin, Martin Sheen and Sam Waterson. If we’re not watching that show, it’s usually reruns of Friends, Seinfeld or … wait for it … Golden Girls (I already regret...

It’s a short week, so let’s keep this email short too! On Monday, we’ll be updating the performance of our Macro Select model. Recall it’s a combination of FCF Yield, EPS Growth, +EPS revisions and middle beta. Our favorite factor which we’ve talked about all year, earnings revisions, is ending...

Micro Factors Like EPS Revisions Are Outperforming Macro Factors Like Beta Equity valuations to remain in a sideways pattern until PMIs decline in early 2022 Still a few more Strategists left to upgrade their price targets A Brisket Recipe?! Company Fundamentals Driving Returns In 2021; Macro...

In a rush? Here are the takeaways from today’s email: Picking Stocks Using Earnings Revisions Works Very Well At The Peak Of PMIs/ISM EPS Revisions likely to decelerate in 2022, leading to factor scarcity and increased demand. PMIs remained at healthy levels in August, Weaker In EM. ISM New Orders...

While we didn't make the call that bond yields would melt down after the March peak, we are noting today that investors shouldn't INVEST for another round of reflation or higher yields ahead. Perhaps there is an opportunity for a ST trade (i.e., a bounce), but betting on a sustained rebound in...

Our "PMI Plateau" story continues to play out. We're still not at "peak PMIs" - US Markit MFG PMI rose to another New HIgh. ISM new orders above 60 for 13th consecutive month. Headline decline impacted most by drop is supplier deliveries (fewer bottlenecks?) Strong ISM New Orders = Strong EPS...

It’s earnings season, a time where investors tend to tune out macro.  That said, we have earnings-relevant macro data coming in this week as PMIs are reported. Here are the key points: Growth and Value Factors are BOTH UNDERPERFORMING?!?! Earnings momentum (revisions and surprises) are separating...