JHMT News and Press, John Hancock Multifactor Technology From 05/12/22

We compared Broadcom and Marvell’s semiconductor business across logic and analog semiconductors and determined that Marvell edges out Broadcom with a superior ASICs and processor technology. Further, we compared their analog business and determined that Broadcom has a superior...

In January, the bubble indicator showed that the US equity market as a whole was at the edge of a bubble but not in an extreme bubble. The earnings growth discounted in stocks is still a bit high. While the reversal has been significant, discounting of future earnings remains some...

The stagflation scenario got a little more traction last week with the release of a negative Q1 GDP print on Thursday and hints of more inflation on Friday. April was a really rotten month with everything down but the general commodity indexes. Investing is mostly an exercise in s...

The forward 4-quarter estimate rose this week to $234.04 from $233.83 although the forward P/E compressed to 18.2x from last week’s 18.8x. The S&P 500 earnings yield jumped to 5.48% from last week’s 5.32%. Tech and Growth is struggling in 2022, which is perfectly...

Rising interest rates tend to hurt growth stocks, and more specifically tech stocks due to their high price-to-earnings ratios and low dividend payments. The S&P 500 is trading at its cheapest since before the pandemic, with a current P/E ratio of about 25.6. Inflation and sup...

Markets have been exceptionally volatile since mid-November, as investors have digested the impacts of rising inflation, pending US Federal Reserve actions, the potential end of the COVID-19 crisis, and the tragic situation in Ukraine. In our strategy, we tend to emphasize higher-grow...

The broader equity categories turned in negative results in Q1. U.S. large-cap stocks, as measured by the S&P 500 Index, held up the best at a decline of 4.6%. Bonds performed worse than many of the equity categories, despite typically being viewed as a safe haven investment. In t...

Inflation expectations have kept the Federal Reserve center stage as they commenced their interest rate rising cycle in March. The war in Ukraine and Omicron’s spread in China impacted inflation and supply chains differently, but both delay supply chain normalization. Regar...

Stock markets fell in the first quarter as Russia’s invasion of Ukraine destabilized the growth outlook, amplified concerns about rising interest rates and unleashed geopolitical risks. While the conflict has created many uncertainties, we believe the impact of persistent infla...

Follow the Money is a series of brief, information-rich posts that I will publish periodically but not on a fixed schedule. After rallying for 9 of the last 11 days, the S&P 500 went from down -13% to down just -3.4%. Growth has been hit hard by the slide in tech stocks this y...