Myles Zyblock, RBC Capital Markets’ Chief Institutional Strategist, is just published his latest U.S. Equity Strategy Weekly Report. From the note:
We are overweight equities. The period of seasonal weakness is upon us (typically May to September), but this should not be confused with cycle- ending equity market action. Most sustained equity market downturns are associated with an economic and/or earnings recession. While we see earnings growth running at a below-trend pace of ~4–6% this year and next as margins level off, all domestic leading macro data—without exception—argue for continued GDP recovery (a proxy for the top line).
Here’s the most important slide from the note:
Photo: RBC Capital Markets