Weekly Chartology; Are Storm Clouds Gathering Over David Kostin?
Is Goldman AJ Cohen-replacement David Kostin in need of a dosage increase in his daily hopium uptake? "The positive price action from the CNY revaluation announcement was fleeting as the market appears to have turned to more domestic concerns, with the Consumer Discretionary sector leading the way down. The fears seem to be well-founded as 1Q GDP was revised down today to 2.7% from 3.0%, primarily based on weakness in final demand, which came down to 0.8% from 1.4%." When even he can't spin the data positively, it may be time to buy... or at least do the opposite of his recommendations. To wit: "Our recommended sector weightings have generated -23 bps of alpha YTD. Our overweights (Info Tech, Energy, and Materials) generated -34 bps of alpha while our underweight Consumer Discretionary position is down 14 bp. Underweights in Health Care, Telecom, and Utilities have added +24 bps of alpha."