Macro to Micro: 6 Charts and 2 Trades

This report highlights current market themes including tech momentum, the impact of high-income retail investors on luxury/travel sectors, and net buying trends in Financials.

Key Takeaways

• 1.Institutional and retail momentum in tech continues, though hedge funds remain short the Nasdaq index.
• 2.Retail investor participation is heavily skewed toward high-income households, benefiting luxury and premium travel.
• 3.Financials sector is showing signs of re-engagement as prime data indicates net buying.

Table of Contents

• Positioning in Tech
• The impact of retail investors
• The K-shaped economy
• Positioning in Consumer Discretionary
• Differentiated play on the higher-income consumer
• Financials
• Why we are constructive on RACE