A board on the floor of the New York Stock Exchange, May 17, 2016 in New York, New York.Getty Images
Globe editors have posted this research report with permission of Canaccord Genuity. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:
As the major equity indices experienced a historic turn higher off the February low, we adopted a neutral market and sector position, with the intention of becoming more aggressive buyers as we approach the OPEC meeting, FOMC decision, and UK Referendum in June. We now believe the longer-term fundamental and tactical backdrop warrant being more aggressive buyers on any further near-term weakness the fear of these events bring.
The combination of historic monetary accommodation, better economic readings, a positive inflection in EPS beginning in Q2 2016, and the historic turn in market breadth and credit warrant a more aggressive position. Our 2017 target is based on 18x our S&P 500 (SPX) Operating EPS estimate of $130 vs. our 2016 estimate of $121. We believe a more stable global economy, and an emerging currency and commodity price backdrop should allow for better EPS growth despite the macro headwinds. We would focus new money in the more "offensive" sectors.
Read the full report here.
Globe app users click here for the full report
Read other research reports here.