October 11, 2021
Among cyclical sectors which benefit from fading Covid concerns, Energy is set to take a leadership role. Andrew speaks about supply and demand dynamics, as well as why current positioning make energy names like OVV, RDS/A and SLB attractive.
September 30, 2021
JSC’s own Cannon Allen speaks with Barron’s about the fiduciary nature of a conservatorship, which contrasts with abusive practices sometimes seen.
September 3, 2021
Andrew discusses two companies with strong balance sheets, and significant upside potential. VSCO appears to be mispriced following its spin from L Brands, while BAM is still valued under an old capital allocation model that doesn’t account for positive changes to the company’s fundraising efforts.
August 5, 2021
With bond yields currently reflecting late cycle dynamics, we look to the next few jobs reports for proof of a durable and sustainable cyclical recovery. An in-line/higher number on Friday will reinforce macro fundamentals which still point to early cycle dynamics, higher bond yields and cyclical equity sector outperformance—with OLN, LBV and LIN among the beneficiaries.
July 21, 2021
Andrew Graham explains why Jackson Square Capital doesn’t have enough conviction in cryptocurrency to buy into the hype: 1) crypto doesn’t have enough of a track record to get a good understanding for things like correlation, and 2) it’s tough to value since it doesn’t produce cash flow. JSC does have exposure to blockchain-based digital payments platform, however, via investment in SBNY.
June 22, 2021
Prices have been climbing amid faster than expected reopening and recovery, low interest rates, and supply constraints. If inflation ends up being more than transitory, it likely spells the end of outsized gains in tech. An inflationary environment favors companies with exposure to hard assets, such as real estate and infrastructure. Other bright spots include energy, materials, mining and some regional banks.
June 18, 2021
There are unique challenges associated with managing a concentrated equity position, but ultimately we all face the same two ‘elephants in the room’ when it comes to money: and those are emotion and uncertainty. Having a plan that balances a client’s financial security with desire for upside, along with other goals is critical.
May 21, 2021
Many companies cancelled stock buyback plans last year during the Covid lockdowns due to uncertainties, but now feel more comfortable about increasing shareholder returns via dividends and stock buybacks. Expect to see firms to enact buybacks as they grow optimistic about near-term prospects and as the economy continues to open up amid rapid vaccinations.
May 11, 2021
Supply constraints build as a result of strong demand, with the US consumer not skipping a beat. Expect pricing pressures to be more acute and broad-based in the near-term as Fed policy prioritizes lingering labor market weakness. Higher inflation remains as a key identifiable risk for equity markets in Q3.
May 4, 2021
Utility stocks are considered a ‘bond proxy’ due to their high dividend payout ratios. Utility stocks are struggling because bond yields are currently rising, but we may consider including Utilities in portfolios when our bond yield forecasts changes.
May 4, 2021
74 million Americans have gained access to legal sports betting markets since 2019, with the potential for an even bigger boost as states look to capture sports-gambling-related taxes in the wake of pandemic-related fiscal challenges. Mobile betting and in-game wagering create additional momentum. Those with the greatest potential to benefit are sportsbooks, strong brands like Barstool Sports, and companies that have agreements to broadcast major professional sports.
April 9, 2021
BP to become first oil major to resume share buybacks, while competitors remain cautious. Andrew says buybacks may be important to the group now as investors prefer slower capital spending and better free cash flow generation.
March 31, 2021
The global growth story and bottleneck pressures have lifted core goods pricing to a 20 year high. As growth rotates to the service sector, we could see reflation emerge.
March 31, 2021
As the economy perks up, there’s the temptation to take the ‘value is everywhere approach.’ That won’t be the case. We look to cyclically sensitive stocks, focusing in particular on banks, and highlight opportunities to find unexpected value within tech.
March 15, 2021
Consumer confidence was already increasing prior to the latest round of stimulus. But, are the latest checks a tradable event? Hear from experts, including Andrew Graham, who expects incremental benefits to accrue to growth retailers.
February 24, 2021
The Wall Street Journal outlines four steps you can take when answering this question in today’s low-rate environment. As mentioned in the article, Andrew Graham, CFA is generally in favor of keeping a mortgage of up to the tax-deductibility limit of $750,000. But, there are exceptions.
February 24, 2021
Dividend increases are expected from US companies whose earnings have been far more resilient than firms in the Eurozone and UK economies during the pandemic. Companies in the consumer staples, financials, energy, and technology sectors are most likely contenders.
February 19, 2021
Rising bond yields put downward pressure on earnings multiples across the board, and create risk for lower re-rating in richly valued software and technology companies. There are, however pockets of opportunity, including Verisign and GoDaddy.
February 17, 2021
Eight market experts predict the likelihood of a correction and identify sectors and stocks likely to be hurt in the downturn, and contrarily, which sectors would be buoyed further by a continued rally.
February 8, 2021
Investment and career dynamics for NFL players call for tailored investment strategies. Unlike other high-income earners, most professional NFL players’ earnings are concentrated within a short window of time. This makes income planning critical, and also informs investment selection. Time constraints, unique income tax implications and the speed at which earnings can accumulate all factor into the financial fitness of these top tier athletes.
February 5, 2021
With rates low, companies will look to mergers as business catalysts. Financials are an obvious beneficiary and attractive on their own, although we’ve identified three potential acquisition targets in this space. In addition, keep an eye on health care and biotech sectors, especially companies on the brink of producing promising phase three data for headlines drugs.
January 19, 2021
The incoming Biden administration and Democrat–controlled Senate increases fiscal spending expectations, and adds conviction to our call for higher bond yields and curve steepening. As a result, we maintain our cyclical/value equity bias with an eye on deep-cyclicals. We share two of these names with Nicole Petallides.
December 14, 2020
There have been multiple short-lived rotations into value since 2009. None have lasted long, and it may be tempting to think the current rotation won’t have staying power either. Writing for US News, Andrew covers the events that contributed to eleven years of cyclical/value sector underperformance and makes the case why this time may be different. He also identifies three value stocks at fundamental inflection points
Andrew Graham on The Claman Countdown
November 24, 2020
Speaking with Liz Claman on Fox Business News, Andrew shares two value sector stocks and one growth stock with incredible upside potential. The two also briefly discuss Biden’s Treasury Secretary nominee, Janet Yellen.
Link coming soon.
November 3, 2020
A Democrat ‘trifecta’ would probably lead to large-scale fiscal spending and rising bond yields, benefiting the financial sector. If Trump wins reelection, the GOP maintains its majority in the Senate and the House remains under Democratic control, investors are likely to forget about the prospect of higher tax rates and more business regulations, leading to immediate upside. However, overall markets prefer divided government.
October 16, 2020
Andrew identifies Apple suppliers that could benefit the most from sales of the newly released 5G iPhone. He also cautions Reuters’ Fred Katayama on a group of stocks to avoid.
October 5, 2020
Biden tax plan to have negative implications for US businesses, especially those with foreign subsidiaries. Higher corporate tax rates would be a slight headwind for S&P 500 earnings. The outlook for individuals and families is more complicated, and we provide an overview of potential changes and actions to deal with implications.
September 7, 2020
As economic data and vaccine optimism improve, expectations for tech companies are likely to rise and we are more likely to see tech names start to fall short of (already outsized) expectations. This domino effect could spur a rotation out of tech and into value cyclicals.
July 27, 2020
Speaking with Haidi Stroud-Watts, Andrew discusses the risk posed by US/China headlines and the current market impact of COVID-19.
July 26, 2020
Speaking with Doug Krizner and Paul Allen, Andrew discusses why US data momentum is the biggest driver for US equities, why the tech runup isn’t a bubble, and how gold fits into the current economic picture.
July 24, 2020
The fallout from COVID combined with increased anxiety around the upcoming election has retail investors hoarding cash and steering clear of the markets, in what’s considered a bullish contrarian signal. Apart from the election, Andrew discusses a few possibilities and their potential impact on markets.
July 17, 2020
Andrew discusses the equity risk premium and why equities are inexpensive relative to bonds. And why recent strength in cyclical/value sectors is unlikely to lead to rotation out of growth.
June 24, 2020
Tech names clearly benefit from COVID-19 disruption, specifically in a more rapid adoption of cloud computing. But in this segment we focus on Eli Lilly (LLY), our cleanest growth story in Pharma with a strong product pipeline and catalysts ahead.
June 8, 2020
The recent rally in equity markets has occurred despite weak overall economic activity and still bearish investor sentiment. The key factor is the rapid growth in money supply, which has created an unprecedented global liquidity boom to support markets in the face of extraordinary hurdles.
May 21, 2020
Low bond yields drive equity market and our move to ‘sustainable dividend yield’ names. We expect short term consolidation followed by higher levels in the SPX H1 2021 and economic recovery to 2019 levels by late 2021.
May 15, 2020
Speaking with Haidi Stroud-Watts on Bloomberg Daybreak Australia, Andrew discusses the outlook for oil prices and the potential for attractive investments in US Energy.
May 15, 2020
Investors are bracing for more turbulence in U.S. stocks, as some states prepare to reopen their economies and global trade tensions rise. Andrew mentions JSC’s focus on stocks he believes can maintain high dividend yields, especially within the pharmaceutical industry.
April 28, 2020
Lower for longer bond yields make bond-like equities an eventual substitute for frustrated income investors. Companies with sustainable dividend yields fit the bill. Andrew mentions a few names in particular while speaking on TD Ameritrade Network.
April 10, 2020
A strategy involving a loss limit rule may position you to maximize gains, limit more severe drawdowns during a bear market and drive tax-efficient investment returns.