Forget Thursday's market rout. Your stocks have risen sharply in recent years, likely throwing your portfolio out of whack. ...

Flash | 09 Feb 2026 08:27:04 ET │ 10 pages China Consumer HK & Singapore marketing investor feedback CITI'S TAKE We met with ~70 institutional investors in Hong Kong (Jan 27-30) and Singapore (Feb 3-6). Given generally under-weighted in China consumer sector amid recent rotations among sectors, investors are more willing to discuss positive/negative surprises on 26E outlook, rather than backward-looking 2025 earnings or government's policies. As we expected (see Jan 12 note: China Consumer – 2026 Outlook), ...

Discipline is key to any successful investment strategy, and thankfully there seems to be plenty of that going around these days. Risk has been falling out of favor over the past 12 months, with investors pulling money from high-performing equities and reallocating into fixed-income products, like bonds and money market funds, according to recent Vanguard research. Rather than a sign of panic, investors are sticking to portfolio targets and rebalancing after years of strong stock returns. Much of the repo ...

Core Viewpoint - La Caisse intends to sell nearly 11% of its shares in Cogeco Communications at a gross price of $67.45 per share, generating approximately $229 million in gross proceeds [1][2]. Group 1: Transaction Details - The sale of shares is part of La Caisse's periodic portfolio rebalancing [2]. - The transaction will result in La Caisse remaining the largest holder of subordinate shares in Cogeco Communications, which serves 1.6 million customers in Canada and the United States [2]. Group 2: Historical Investment and Support - La Caisse has been a supporter of Cogeco Communications since 2013, having invested in various transactions, including a $350 million share purchase in 2023 [3]. - Initial investment included a $50 million loan in 2013 and a contribution of USD 315 million for acquiring MetroCast cable systems in 2017 [3]. Group 3: La Caisse Overview - La Caisse, formerly known as CDPQ, has a dual mandate to generate long-term returns for its depositors and contribute to Québec's economic development [4]. - As of June 30, 2025, La Caisse's net assets totaled CAD 496 billion, indicating its significant presence in major financial markets, private equity, infrastructure, real estate, and private credit [5].

Core Insights - The article discusses strategies to protect 401(k) investments from stock market volatility, particularly in the context of President Trump's return to office and the associated market fluctuations. Group 1: Market Volatility - Stock market turbulence has been a significant concern for investors since January 2025, particularly following the "Liberation Day" tariffs announced by President Trump, which caused a notable drop in the S&P 500 by 11% from April 2 to April 8, 2025, before it rebounded [1]. - Personal finance expert Suze Orman emphasizes that acting on panic during market declines can lead to locking in losses, making recovery difficult, as the markets have shown a quick recovery from earlier losses [2]. Group 2: Investment Strategies - Proper diversification is highlighted as a prudent strategy to protect 401(k) portfolios from market volatility, suggesting a mix of stocks and bonds to mitigate the impact of market swings [3][4]. - Rebalancing portfolios on a scheduled basis, ideally once or twice a year, is recommended to maintain desired asset allocation, although frequent rebalancing in response to volatility can lead to increased transaction costs and eroded gains [5].

Market Performance - The RAM Smid composite gained 3.58% in 4Q25, outperforming the Russell 2500 Value Total Return index which rose 3.15% [2] - Year to date, the RAM Smid composite gained 13.09% compared to 12.73% for the Russell 2500 Value Total Return index [2] - In 4Q25, both the Russell 2500 Value and Russell 2000 Value outperformed the S&P 500 and Nasdaq Composite, indicating a shift in investor focus towards small-cap stocks [3] Economic Outlook - The U.S. economy showed strength into year-end, recovering from a 0.6% GDP decline in 1Q25 to 3.8% and 4.3% in 3Q25 and 4Q25 respectively [6] - Consumer spending is expected to remain healthy in 2026, bolstered by various tax benefits and potential stimulus measures [7] - Inflation, as measured by core PCE, was 2.9% in 3Q25, and is anticipated to ease in the second half of 2026 as tariff impacts diminish [8] Federal Reserve and Interest Rates - Job growth has weakened, with non-farm payrolls down 105,000 in October and the unemployment rate rising to 4.6% [10] - If job growth remains weak, the Federal Reserve may need to cut rates further, especially if inflation driven by tariffs subsides [11] Small Cap Sector Insights - The small cap value sector is viewed as attractively valued and neglected by investors, presenting potential opportunities as large-cap stocks plateau [12] - A shift of just 1% from the S&P 500 into the Russell 2500 value index could require significant buying, indicating potential for a rapid rotation into small caps [13] Portfolio Highlights - The portfolio added three new positions in 4Q25 and maintained a focus on long-term compounding with modest turnover [14] - Mayville Engineering (MEC) was the top performer in 4Q25, rising 34.8%, while Lakeland Industries (LAKE) was the weakest performer, declining 45.31% [16][17] - Donnelley Financial Solutions (DFIN) is transitioning to a software-as-a-service model, with strong balance sheet metrics and significant free cash flow [19][20] Valuation and Future Projections - DFIN shares are considered attractively valued, trading at 10.5x 2026 EPS and 5.6x EBITDA estimates, significantly below peers [23] - A conservative price target of $66 for DFIN implies a 41.4% upside from year-end closing, with potential for further appreciation as the company stabilizes its revenue model [24] - The small and smid cap sector may benefit from moderate GDP growth, easing inflation, and potential Fed rate cuts in 2026 [26]

Core Insights - Retirement introduces the challenge of managing a fixed income amidst rising living costs and longer life expectancies [1] - Small increases in spending can significantly undermine retirement plans, highlighting the importance of controlling expenses [2][4] Spending Control - Establishing a sustainable savings habit early, ideally saving 5% to 10% of income, is crucial for long-term financial health [3] - Consistent portfolio rebalancing and disciplined diversification are essential for ensuring that retirement funds last [6] Financial Management Strategies - Gradually increasing savings and automating the process can help retirees manage their finances effectively [7] - Tracking spending is vital to maintain control over finances and ensure that funds are not depleted prematurely [7]

Core Insights - Rivermont Capital Management reduced its stake in Sensient Technologies Corporation by 205,939 shares, resulting in a value decrease of $20.65 million, bringing the total position value to $7.19 million at quarter-end [1][2] Company Overview - Sensient Technologies Corporation reported a total revenue of $1.60 billion and a net income of $139.11 million for the trailing twelve months (TTM) [4] - The company has a dividend yield of 1.7% and its shares were priced at $96.11, reflecting a 32% increase over the past year, significantly outperforming the S&P 500, which rose by 15% in the same period [3][4] Business Segments - Sensient operates through three main segments: Flavors & Extracts Group, Color Group, and Asia Pacific Group, serving a diverse global customer base across food, beverage, personal care, and household products industries [7] Recent Performance - The company experienced a strong third quarter, with revenue increasing by 5%, operating income rising over 14%, and earnings per share reaching $0.87, primarily driven by margin expansion in the Color segment [8] - Management has raised expectations for local-currency adjusted EBITDA growth, indicating confidence in future performance [8] Market Position - Sensient maintains reliable cash flow, pricing power in natural colors, and manageable leverage, suggesting a solid fundamental position despite the recent stake reduction by Rivermont Capital Management [10]

Market Trends and Outlook - The market is currently in an uptrend, led by procyclical sectors such as industrial commodities and banks, with expectations for new highs in equity markets as earnings and GDP estimates are revised higher [1][2] - There are signs of complacency in the market, indicated by a declining VIX, suggesting potential volatility despite the positive earnings outlook [3] Investor Positioning - Institutional positioning is slightly overweight at the 62nd percentile, while discretionary investors remain neutral, indicating potential for increased market participation [4] - Households are fully invested, with margin loans growing at approximately 40% over the last six months, contributing to rapid buying during market dips [5] Cash Reserves and Market Dynamics - There is an estimated $70 trillion in market funds waiting to be deployed, suggesting that while retail investors are fully invested, there remains potential for further market inflows [6] - Money market rates falling could incentivize investors to seek alternative investments, although not all cash reserves are likely to flow directly into equities [7][8] Technical Factors and Year-End Positioning - Current market movements may be influenced by technical factors rather than fundamental earnings growth, especially given the light trading volume typical at year-end [9][10] - Leadership rotations in the market began earlier this year, with value outperforming growth by 5% since November 1, indicating a shift in investor sentiment [10] Commodities as an Investment - Commodities are viewed as a hedge against inflation, with a strong uptrend observed; however, there are concerns about overbought conditions and potential consolidation in the market [11][12] - Central bank buying of gold and increased retail trading activity suggest continued interest in commodities, although the market may face challenges due to overvaluation [12][13]

分组1 - The article emphasizes the importance of careful financial management for retirees, particularly in maximizing income from savings before the end of 2025 [1] - Retirees with traditional retirement plans must adhere to Required Minimum Distributions (RMD) rules, starting at age 73 for those born before 1960, with penalties for non-compliance [2][3] - Strategies such as making qualified charitable distributions can help minimize tax liabilities associated with RMDs, highlighting the need for timely implementation of such strategies [4] 分组2 - It is crucial for retirees to review and rebalance their investment portfolios to ensure they generate sufficient income while managing risk exposure [4] - Retirees should assess their portfolio for overexposure to individual stocks, as significant gains may lead to concentrated risk, suggesting a need to sell shares to maintain a balanced asset allocation [5][7] - Understanding costs and income projections for the upcoming year is essential for effective financial planning in retirement [6]