CLIENT TALKING POINTS
CHINA
After having another +0.4% week (with all of Europe getting smoked) last week, Shanghai Comp added to its recent gains +1.4% overnight to +8.3% year-to-date. On the margin the Shanghai Comp is the most improved equity market in the world in the last 6 weeks.
EUROPE
Europe, on the margin, is the biggest mess in global equities in the last 6 weeks, so they’re trying to bounce them this morning but they’re nowhere near challenging their 1st lines of @Hedgeye resistance (Greece was -9.9% last wk, and is +2% here).
UST 10YR
The bond market couldn’t care less about people getting whipped around in spoos – 2.43% this morning with an immediate-term risk range of 2.40-2.50% (lower-highs and lower-lows being signaled) and Yield Spread at its year-to-date lows.
TOP LONG IDEAS
HOLX
Hologic is emerging from an extremely tough period which has left investors wary of further missteps. In our view, Hologic and its new management are set to show solid growth over the next several years. We have built two survey tools to track and forecast the two critical elements that will drive this acceleration. The first survey tool measures 3-D Mammography placements every month. Recently we have detected acceleration in month over month placements. When Hologic finally receives a reimbursement code from Medicare, placements will accelerate further, perhaps even sooner. With our survey, we'll see it real time. In addition to our mammography survey. We've been running a monthly survey of OB/GYNs asking them questions to help us forecast the rest of Hologic's businesses, some of which have been faced with significant headwinds. Based on our survey, we think those headwinds are fading. If the Affordable Care Act actually manages to reduce the number of uninsured, Hologic is one of the best positioned companies.
Asset Allocation
| CASH | 46% | US EQUITIES | 0% | |
| INTL EQUITIES | 14% | COMMODITIES | 6% | |
| FIXED INCOME | 26% | INTL CURRENCIES | 8% |
THREE FOR THE ROAD
TWEET OF THE DAY
INDIA (our fav Eastern Equity market) +0.8% to +22.2% YTD $EPI
@KeithMcCullough
QUOTE OF THE DAY
The farther back you can look, the farther forward you are likely to see.
-Winston Churchill
STAT OF THE DAY
Today in 1929, Babe Ruth became the 1st player to hit 500 homers (in Cleveland, Ohio).