Given the excitement surrounding Generative Artificial Intelligence (GAI) since Microsoft and OpenAI released ChatGPT to the public in November, we thought it would be educational, interesting, and fun to let GAI write our regular quarterly earnings updates. ChatGPT only has data through 2021, so we are using Google’s GAI app, Bard. Kind of fun to […]
Volatility in the financial markets and economy during March triggered a shift in the recommendations from Northlake’s thematic models. For the first time since September 2020, the Style model is recommending growth. The model signal had been value or neutral for two and a half years. The Market Cap model shifts back to large cap […]
There are no changes to the signals from Northlake’s Market Cap and Style models. We are sticking with our current recommendation of Mid Cap and remaining neutral on growth vs. value. Client positions using the models in the S&P 400 Mid Cap (MDY), the Russell 1110 Growth (IWF), and the Russell 1000 Value (IWD) will […]
Walmart (WMT): When we purchased WMT as a new long-term investment last June, our thesis was built on the idea that the stock offered both offensive and defensive characteristics. The defensive characteristics were important with the economy and market in an uncertain period amid high inflation and the Fed’s aggressive monetary policy tightening to slow […]
SONY Corporation (SONY): SONY reported a good quarter with modest beats on operating income driven by profit margins. The company passed through a portion of the beat to its full-year operating income forecast. Often companies that only pass through a portion of an earnings beat are penalized, but that usually does not apply to SONY […]
The stock market is off to a great start in 2023 in line with Northlake’s Market Outlook anticipating more volatility, avoidance of a severe recession, and positive returns in 2023. We are encouraged that our models, favored themes, and individual stocks are off to a good start. Our Market Cap model favors mid cap again […]
IBM (IBM): IBM reported mixed 4Q22 results that were not good enough to support the stock in the near-term or bad enough to derail Northlake’s bullish long-term thesis. Revenue came in above expectations, which for us is the key component in the bull case. IBM has not shown consistent growth for a long time. The […]
As we anticipated in last month’s analysis, Northlake’s Market Cap model shifted from large cap to mid cap with the latest update. The models use two-month averages to reduce signal volatility, so dropping November’s strong large cap reading in favor of January’s new small cap reading flipped the signal. Most of the shift over the […]
Northlake’s thematic model recommendations are unchanged for December. The Market Cap model again favors large cap after last month’s change from mid cap. The Style model begins a fifth consecutive month at neutral between growth and value. Client portfolios that use Northlake’s models will continue to own the S&P 500 (SPY) for market cap exposure, […]
Sony (SONY): SONY had improved results after a couple quarters of modest downward revisions. 2Q22 earnings came in ahead of consensus, and the company raised its guidance for FY22 which ends on 3/31/23. Importantly, SONY’s games segment showed signs of stability as the post-pandemic shift in behavior that has reduced engagement appears to have runs […]
