Key Points:
- The U.S. market is back in an Uptrend Under Pressure, with high volatility and continued narrow sector leadership adding to risk.
- A majority of 47 global markets are in a Downtrend for the first time since July 2016.
- We want to see better breadth and improvement in global conditions to become more aggressive. If/when this happens, these are a few multi-year themes from which we think leadership will continue:
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- Growing Semi Content in Autos: ON Semi ( ON ), Sunny Optical ( SOPT.HK; 2382:HK )
- Growing Chinese Bio-Pharmaceutical Industry: Livzon Pharma ( LVZN.HK; 1513:HK ), 3SBio ( SBIL.HK, 1530:HK )
- Evolving Digital Payments Landscape: Paypal ( PYPL ), Pagseguro ( PAGS )
- Transition of Legacy Software Systems to Cloud: Atlassian ( TEAM ), Splunk ( SPLK )
- Digital Video Game Distribution: Nintendo ( NNDO.JP; 7974:JP ), Activision Blizzard ( ATVI )
- Low-Cost Airlines in Emerging and Frontier Markets: Jeju Air ( JJU.KR; 089590:KS), Azul ( AZL.BR; AZUL4:BZ )
