Global Multi-Asset Investment Strategist, True Insights

Jeroen Blokland

Global Multi-Asset Investment Strategist

Build Well-Diversified Multi-Asset Portfolios

True Insights

Our research helps investors build well-diversified multi-asset portfolios and profit from market developments. In addition, our unique and proven Macro – Sentiment – Valuation (MSV) investment framework ensures a consistent flow of new investment opportunities. Together with our market views, these opportunities will be reflected in our live ETF-based Global Multi-Asset Portfolios.

Cross Asset Strategy

<ul>
<li>Positioning has been one of the few positives for equities in recent weeks, but a storm is brewing.</li>
<li>Systematic Macro investors have been absorbing USD 170 billion in global equities in recent weeks for just one reason, volatility.</li>
<li>Should equities drop to their October lows, our charts suggest volatility-related equity selling pressure of USD 300 billion. We remain underweight equities.</li>
</ul>


Positioning has been one of the few positives for equities in recent weeks, but a storm is brewing.
Systematic Macro investors have been absorbing USD 170 billion in global equities in recent weeks for just one reason, volatility.
Should equities drop to their October lows, our charts suggest volatility-related equity selling pressure of USD 300 billion. We remain underweight equities.


Systematic Macro Investors Represent USD 300 Billion in Selling Pressure!

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>Broad equity indexes remained range-bound, as the S&amp;P 500 and the MSCI World Index ended the week -0.06% and +0.07%, respectively.</li><li>The S&amp;P 500 has been stuck between 4,070 and 4,170 for the past three weeks.</li><li>Small caps finished slightly better, with the Russell 2000 up 0.59% from last week.</li></ul>

Broad equity indexes remained range-bound, as the S&amp;P 500 and the MSCI World Index ended the week -0.06% and +0.07%, respectively.The S&amp;P 500 has been stuck between 4,070 and 4,170 for the past three weeks.Small caps finished slightly better, with the Russell 2000 up 0.59% from last week.

The Highlights : Cannabis News for the Week Ending April 21, 2023

<ul>
<li>US retail sales fell 1.0% in March, the fourth decline in the last five months. We expect the downturn in the housing market to cause another dip in consumer sentiment.</li>
<li>Our earnings-per-share vs. P/E ratio analysis provides little upside. It will demand higher valuations and/or positive earnings growth to allow for meaningful upside.</li>
<li>Sentiment has been the key market driver in recent weeks. But with the VIX Index down to 17 in a weakening macro environment, the impulse may be fading.</li>
</ul>


US retail sales fell 1.0% in March, the fourth decline in the last five months. We expect the downturn in the housing market to cause another dip in consumer sentiment.
Our earnings-per-share vs. P/E ratio analysis provides little upside. It will demand higher valuations and/or positive earnings growth to allow for meaningful upside.
Sentiment has been the key market driver in recent weeks. But with the VIX Index down to 17 in a weakening macro environment, the impulse may be fading.


Changes in Portfolio Weights: Lowering the Weight of Equities

<ul><li>Broad equity indexes booked their fourth straight week of positive returns, with the MSCI World Index and the S&amp;P 500 up 1.23% and 0.79%, respectively.</li><li>Small caps followed suit, with the Russell 2000 gaining 1.48% this week.</li><li>Cannabis stocks slid for the sixth straight week, with the MSOS ETF declining 0.56%. It was shaping up to be a good week until the MSOS ETF fell 3.97% on Friday.</li></ul>

Broad equity indexes booked their fourth straight week of positive returns, with the MSCI World Index and the S&amp;P 500 up 1.23% and 0.79%, respectively.Small caps followed suit, with the Russell 2000 gaining 1.48% this week.Cannabis stocks slid for the sixth straight week, with the MSOS ETF declining 0.56%. It was shaping up to be a good week until the MSOS ETF fell 3.97% on Friday.

The Highlights : Cannabis News for the Week Ending April 14, 2023

<ul>
<li>We have to go back to 1980 to find a month when small US businesses thought it was an even worse time to expand.</li>
<li>Volatility is falling off a cliff as investors embrace a new kind of goldilocks. </li>
<li>A common denominator drives Bitcoin and Gold higher: their perceived value as insurance against adverse market circumstances.</li>
</ul>


We have to go back to 1980 to find a month when small US businesses thought it was an even worse time to expand.
Volatility is falling off a cliff as investors embrace a new kind of goldilocks. 
A common denominator drives Bitcoin and Gold higher: their perceived value as insurance against adverse market circumstances.


Sentiment Strengthens, While Fundamentals Fade

United States

The MSCI World Index is a free-float weighted equity index. It was developed with a base value of 100 as of December 31, 1969. MXWO includes developed world markets, and does not include emerging markets. MXWD includes both emerging and developed markets.

MSCI World Index (MXWO INDEX)

Systematic Macro Investors Represent USD 300 Billion in Selling Pressure!

When volatility rises, as several indicators suggest, Systematic Macro investors will be forced to dump billions of stocks onto the market.

Jeroen Blokland

The Highlights : Cannabis News for the Week Ending April 21, 2023

Broad equity indexes remained range-bound, as the S&P 500 and the MSCI World Index ended the week -0.06% and +0.07%, respectively.

Water Tower Research

Changes in Portfolio Weights: Lowering the Weight of Equities

We lower the weight of equities in our Global Multi-Asset Portfolios as the catalysts for an extension of the rally are fading.

Jeroen Blokland

The Highlights : Cannabis News for the Week Ending April 14, 2023

Broad equity indexes booked their fourth straight week of positive returns, with the MSCI World Index and the S&P 500 up 1.23% and 0.79%,...

Water Tower Research

Sentiment Strengthens, While Fundamentals Fade

Sentiment strengthens, while Fundamentals fade. 30+ charts to get you up to speed on all things Macro, Sentiment, and Valuation, and why you should...

Jeroen Blokland