House Oversight — Estate records
HOUSE_OVERSIGHT_014622
Top 10 US Ideas Quarterly
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Top 10 US Ideas Quarterly Q1 Top 10 Ideas Strategy Equity | 03 January 2017 Corrected Top 10 US Ideas – 1Q17 The backdrop for risk assets has changed dramatically over the past year. As Michael Hartnett pointed out, 2016 saw global interest rates fall to 5,000-year lows and the likely end of what has been the greatest bull market in bonds ever. We experienced a historic US Presidential election and Republican sweep of Congress on November 9th. Later that same month, OPEC reached a historic deal to reduce crude production by 1.2mn b/d with non-OPEC producers delivering an additional 600k b/d of cuts – the first such joint curb since 1998. Risk assets responded with 30-year Treasury reaching a yield of 2.088% in July, US equity markets reaching all-time highs, and oil prices rallying more than 40% since the start of the year. Given the Republican sweep - and the resulting likelihood that the logjam of Washington gridlock will be broken - our Top 10 stock selections are more heavily geared toward companies that may benefit from increased fiscal stimulus, a more pro-business agenda, and/or tax-policy reform. Our current strategy stands in stark contrast to our stance last year of looking for defensive growth ideas. United States Alpha Generation Research MLPF&S Anthony Cassamassino Strategist MLPF&S +1 212 449 6874 anthony.cassamassino@baml.com Derek Harris Strategist MLPF&S +1 646 743 0218 derek.harris@baml.com Eight Buys and two Underperforms Our 1Q17 list includes eight Buys and two Underperforms across six sectors. Our Buys are Aetna Inc, Dover Corp, General Dynamics, Hess, MGM Resorts, Norfolk Southern, SVB Financial, and Texas Instruments. Our Underperforms are Consolidated Edison, and TripAdvisor. How the list will be maintained and updated We will publish this list at the beginning of each quarter. Ideas will generally remain on the list through the quarter unless coverage is dropped or the recommendation changes. Any security which is removed will not be repla […]