• Regional Strategy — Our regional strategy is unchanged. We continue to have a defensive tilt in our regional recommendations, and are Underweight the commodity-rich regions of CEEMEA and Latin America.
• Highlighting a Country — Japan continues to be the top-ranked country. Over the past twelve months, share buybacks in Japan have been the largest of any country / region, the first time that country has been the global buyback leader since we launched the regional model in April 2014.
• Sector Strategy — Our sector strategy is also unchanged and remains “less cyclical, more defensive.”
• Highlighting a Sector — The Energy sector has gotten more expensive for the second month in a row suggesting, perhaps, that stock prices in the sector have not fallen as fast as earnings estimates.
Michael Geraghty is the Global Markets Strategist at Cornerstone Capital Inc. He has over three decades of experience in the financial services industry including working as an investment strategist at UBS and Citi.