Asset Allocation in a Risk-On Environment: Bank and Industrial Stocks

Real VisionJune 01, 2021
Sam Burns, chief strategist at Mill Street Research, returns to Real Vision to share his ideal asset allocation at this juncture. Measuring risk factors such real yield, credit risk, equity volatility, and metals pricing, Burns concludes that risk appetite remains strong, and therefore, he recommends a portfolio that is overweight equities and underweight bonds. He uses his Monitor of Analysts' Estimate Revisions (MAER) model to analyze sectors as well as countries, predicting remarkable strength in financial and industrial stocks and underperformance in utilities and consumer staples stocks. His model sees consistent analysts' earnings estimates strength in the U.S. as well as Europe and relatively weak earnings estimate revisions in Asia (with the exception of Japan). Key learnings: Burns recommends a portfolio that is overweight equities, underweight bonds, with the equity portion consisting disproportionately of value and cyclical sectors such as financials, industrials, materials, and energy. Burns is not constructive on “defensive” sectors such as utilities or consumer staples.
Get access to daily trading ideas, trending topics, interviews and more!
Please subscribe to Insider Tracking Advantage Ultra

Other Real Vision Videos

Real VisionAugust 05, 2021
Labor Market Shows Improvement as Ethereum Undergoes Crucial Update
Real Vision senior editor Ash Bennington welcomes editor Jack Farley and Jim Bianco, president of Bianco Research, to discuss today’s market reaction towards the improvement in the labor market and important updates to the Ethereum network. Bianco covers the decline in unemployment claims and considers whether this trend is sustainable as the delta variant continues to hamper full reopening. The trio also looks at the London hard fork update to Etheruem and its potential effects on Ether’s price and long-term prospects for the network.
How a Molecular Biologist Reengineered the Blockchain
From pursuing a PhD in molecular biology to creating a DeFi token before "DeFi" was a term and founding Vesper, Jordan Kruger, CEO and co-founder of Vesper, shares her exciting career. Similar to how the human genome is mapped in a searchable directory, Kruger’s initial reaction to the Satoshi papers was to design a similar system for searchability through the blockchain. Applying her expertise, Kruger analyzed the blockchain from a unique perspective and was able to recognize and utilize patterns. In 2018, she helped create one of the earlier, truly autonomous cryptocurrencies, which pioneered many of the foundations we see within DeFi today. Her experiences culminated into Vesper, a DeFi growth engine in which participants can earn yield in various customizable avenues. Kruger walks us through this journey while providing unique insights into the DeFi space at large. Interviewed by Ash Bennington on July 22, 2021.
Real VisionAugust 05, 2021
Can Oil's Rally Continue?
Bob Yawger, director of the Futures division at Mizuho Americas, appears on Real Vision to share his insights into the energy sector and specifically, oil’s recent rally, despite OPEC’s supply increases on the horizon. Yawger explains the mechanics of smaller futures traders and their ability to influence the spot prices. He also walks through his thoughts on the two biggest threats to oil prices: Covid and OPEC's supply increase. Yawger argues that exploration and production equities are the most profitable areas to invest in within the energy sector. Finally, he comments on the rise of green energy and its potential to disrupt the fossil fuel economy. Interviewed by Jack Farley on August 2, 2021.

Get an Insider Tracking Advantage Ultra subscription for

  • Insider filing email alerts
  • Access to premium INK Research reports
  • Full access to weekly North America Top filer reports
  • and more including access to INK Ultra Money

Only $9.99 per month (plus tax)!