We’re happy to be away from the consensus views of crowds. And on winter weekends, we’re happier yet to be in the heart of ski country. In our regular equity outlook, we combine investing and skiing to map the current market terrain. Like a ski day, markets offer a mixture of riskier paths and easier ones. We’ll point out the positive and negative themes driving equities, and tips to navigate those themes more effectively.
The Black Runs
Black runs are themes that present key risks to equity markets. Be careful and alert before proceeding.
Market noise escalates
Uncertainty under the new administration
The dollar rises
The challenge of an increasingly strong greenback
Not popular with every sector
The Blue Runs
The blue runs highlight issues that are less dangerous, but not without pitfalls. These are attractive runs but proceed with care.
Bank profits are starting to rise but still face challenges
Uncertainty in Europe
Corporate balance sheets have improved but political risks remain
A stronger economy means challenges for yield-driven investors
The Green Runs
Green runs signal easier paths, but watch for crowds and stay away from the pack.
Flight to safety ends
Defensive stocks sell off and risk-taking returns to the market
The outlook for the U.S. economy improves
The new administration and expectations for additional Federal Reserve (Fed) rate hikesboost confidence