Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
US Equity Strategy: On The Cusp Of Another LBO Upcycle [Binky Chadha]
With $500bn of uninvested private equity capital, $1.5 trillion in purchasing power being put to work should have a significant impact on returns. We think conditions are very supportive of an up cycle in LBOs: credit markets are robust, equity valuations look attractive; and corporate fundamentals strong. Our M&A targets basket of 50 stocks (rebalanced monthly, ticker DBUSACQE Index) has seen 11 acquisitions, picking up most recently CEG and BKS, and has significantly outperformed the S&P 500 (13%) since inception. We build here on our M&A framework to identify key attributes of LBO targets and create a basket of stocks to capitalize on a potential LBO wave. In back tests the strategy of buying a basket of LBO candidates significantly outperformed the market historically and in previous LBO up cycles.
US Daily Economic Notes: Don't just stand there, do something. [Joseph LaVorgna]
Even though the Fed cannot reduce interest rates further and the probability of additional QE is low, this situation does not mean that monetary policy is impotent or that the Fed has to do something. With measures of headline and core inflation on the rise, all the Fed has to do is to keep interest rates where they are for a longer period of time. Eventually, we expect this to provide a more noticeable lift to economic activity than what we have seen so far. Even though nominal interest rates are bounded by zero, real interest rates, simply defined as the difference between the nominal interest rate less some measure of inflation, can decline. In the chart below, we show the real fed funds rate two ways, one measure uses the headline CPI and the other measure uses the core CPI.
The Investigator: A short-term buying opportunity [Ajay kapur]
The rare combination of a strong Tape (breadth) in the US equity market and panic in US equity sentiment has now occurred. In the past, this combination has delivered higher returns for both US and Asian equities on a one-, two- and threemonth window, with a higher probability than normal. Parenthetically, the Asian Tape remains quite poor, and sentiment is neutral/bullish – but no matter, the US opportunity should have positive spillover for equities in general in our view.
Key news flow
Power deficit down at 10.8% in April (BS)
India approves 16 FDI proposals worth $207 mln (Reuters)
Govt does a rethink on capital infusion in public sector banks (ET)
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
US Equity Strategy: On The Cusp Of Another LBO Upcycle [Binky Chadha]
With $500bn of uninvested private equity capital, $1.5 trillion in purchasing power being put to work should have a significant impact on returns. We think conditions are very supportive of an up cycle in LBOs: credit markets are robust, equity valuations look attractive; and corporate fundamentals strong. Our M&A targets basket of 50 stocks (rebalanced monthly, ticker DBUSACQE Index) has seen 11 acquisitions, picking up most recently CEG and BKS, and has significantly outperformed the S&P 500 (13%) since inception. We build here on our M&A framework to identify key attributes of LBO targets and create a basket of stocks to capitalize on a potential LBO wave. In back tests the strategy of buying a basket of LBO candidates significantly outperformed the market historically and in previous LBO up cycles.
US Daily Economic Notes: Don't just stand there, do something. [Joseph LaVorgna]
Even though the Fed cannot reduce interest rates further and the probability of additional QE is low, this situation does not mean that monetary policy is impotent or that the Fed has to do something. With measures of headline and core inflation on the rise, all the Fed has to do is to keep interest rates where they are for a longer period of time. Eventually, we expect this to provide a more noticeable lift to economic activity than what we have seen so far. Even though nominal interest rates are bounded by zero, real interest rates, simply defined as the difference between the nominal interest rate less some measure of inflation, can decline. In the chart below, we show the real fed funds rate two ways, one measure uses the headline CPI and the other measure uses the core CPI.
The Investigator: A short-term buying opportunity [Ajay kapur]
The rare combination of a strong Tape (breadth) in the US equity market and panic in US equity sentiment has now occurred. In the past, this combination has delivered higher returns for both US and Asian equities on a one-, two- and threemonth window, with a higher probability than normal. Parenthetically, the Asian Tape remains quite poor, and sentiment is neutral/bullish – but no matter, the US opportunity should have positive spillover for equities in general in our view.
Key news flow
Power deficit down at 10.8% in April (BS)
India approves 16 FDI proposals worth $207 mln (Reuters)
Govt does a rethink on capital infusion in public sector banks (ET)
No comments:
Post a Comment