On Balance
The Federal reserve is now perceived to be of a Dovish disposition while the China Opening Up story is now prevalent. Risk assets are on the rise and Copper is back to $9000 / tonne. Maybe we should be buying commodity stocks and copper related names in particular. Antofagasta anyone?
Having announced the launch of the Apollo Investment Cycle some weeks ago, today we announced the actual launch of our proprietary Investment Cycle that allows an investor to understand and visualise as a stock, sector or market moves from De-rating to Value, to Re-rating, then Growth.
As the news wires (and not only the financial ones) are dominated by Elon Musk, mostly around Twitter, the value of Tesla and by extension Elon’s own fortune, is melting away as the market tries to assess what Tesla is worth and how to value it?
Today we introduce the Apollo Investment Cycle on the EDGE platform. Clients will already be aware that they can Smart Filter their portfolios and watchlists at a stock level using the proprietary investment factor groupings of Value, Re-rating, Growth and De-rating.
As the World Cup ‘kicks off’ the usual mania and anticipation may be lacking but as the tournament gets underway every football fan will be rooting for their team and emotions will run high.
We have been using the phrase ‘back to value’ for many years now, but what does it mean, you ask?
We have been referring to Apollo as ‘The Need To Know’ since inception in 2004 for good reason. Investors armed with information and insight make smart decisions at the right time to maximise the chance of a positive outcome and now we bring these insights to ETF investors and distributors.
Although the market has been enjoying a modest rally lately for a variety of as yet unsubstantiated reasons, the Apollo EDGE signal that we have been monitoring intently is the ‘Accelerator short.’ As a reminder to those that know us and as an introduction to those that don’t, here is a brief explanation;
A look at the beta heat map and net beta chart shows only too well the extent of the rotation into higher beta / cyclical sectors lately. The move is now at an extreme relative to anything seen over the past 5 years and on that basis a rotation the other way should be in order and there is justification for that reversal for two reasons associated with the Apollo process.