Sticking with Mid Cap and Growth as Stock Market Breadth Expands

Northlake’s Market Cap and Style models continue to favor midcap and growth following the latest updates.  Client accounts using Northlake’s models will hold the S&P 400 Mid Cap (MDY) and the Russell 1000 Growth (IWF) for at least one more month. The Market Cap model shifted to midcap last month and the new reading shows […]

2Q23 Earnings Updates: Part One – IBM, GOOG/GOOGL, META, VICI, TMUS

IBM (IBM): IBM reported an inline quarter with the normal give and take that any large, diversified corporation will experience.  All guidance was reiterated with a slight boost to the growth rate for software revenue.  Software was a little better than expected driven by double-digit growth at Red Hat for hybrid cloud and transaction processing […]

Improved Breadth Drives Shift to Mid Cap

During June, the stock market rally expanded beyond large cap growth and megacap tech to include small and mid cap.  The S&P 400 mid cap was the best performer among the major capitalization weighted indices in June, producing a total return of 9.2%.  The small cap Russell 2000 was next best at 8.0%.  The S&P […]

Models Sticking with Large Cap and Growth in Uncertain Economic Environment

We are sticking with our recommendations for Large Cap and Growth after reviewing the latest output from Northlake’s Market Cap and Style models.  For client assets following the models, this means we will hold the S&P 500 (SPY) and the Russell 1000 Growth (IWF) for at least another month.  Clients using thematic strategies but not […]

Bard Does Northlake 1Q23 Earnings Updates: Part Two – DIS, NXST, VICI, HD, and WMT

So far, we have found using Bard GAI to help analyze earnings report to be insightful and fun.  Insightful to discover more about the capabilities and shortfalls of GAI and fun to try something different.  Several more companies have reported since our last update, and we decided to stick with the same format for Part […]

Last Month’s New Large Cap and Growth Signals Reinforced

There are no changes to the signals from Northlake’s Market Cap and Style models after the latest update.  Last month the models switched to Large Cap and Growth and fresh data shows those signals are even stronger.  The technical and trend indicators are leading the way which is not a surprise given the widely discussed […]

Bard Does Northlake 1Q23 Earnings Updates: Part One – IBM, GOOG, ATVI, META, TMUS, and SONY

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 […]

Rising Uncertainty Leads to Shift to Large Cap and Growth

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 […]

Stability in Equity Themes as Bonds Become More Attractive

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 […]

4Q22 Earnings Updates:  Part Three – WMT, HD, VICI and NXST

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 […]