📈Cyclical Equities Vs. PMIs

• A recent note from strategists at Nordea highlighted the historical relationship between S&P 500 cyclical / defensive stocks to the ISM Mfg PMI

• The latest report on business was released yesterday, the manufacturing print slowed down to 60.8 from 61.1.

• ISM: “Global supply chain issues continue. Getting anything from China is near impossible — extreme delays. Microchip and circuit breaker shortages continue and are expected to continue into 2022.”

• ISM: “My prediction is that 2022 will be very similar to 2021 — similar demand, constrained supply, restricted logistics and rampant inflation.”

• With supply chain constraints seen staying for longer, these comments come interesting building a short-term outlook on the survey