Thematic Signals Vol. 7, #1

Hello and welcome to the 7th volume of Thematic Signals!

2023 has only just started but investors are staring down what is likely to be a challenging December quarter earnings season laced with recession fears, structural changes in the economy, across demographics, technology, and consumer behavior all continue to unfold. While some folks continue to think about the world about us as well as investing in terms of sectors, our view remains that this approach is an outdated strategy.

That means, yes, we continue to see flaws with sector-based investing so much so that, yes, we continue to see it as a dead strategy. Part of that is the shoe-horning of companies into categories that don’t necessarily reflect what is really driving their businesses or to use investor lingo, their “alpha.” Another is that when we see the world through our thematic lens, the world around us continues to generate data points and other points of affirmation for our thematic strategies. While the near-term may be volatile for stocks, following those thematic signposts offers a favorable longer-term outlook.

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About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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