Evolution 4.0 Analysis | Brunswick Corp. [BC]

Evolution 4.0 Technical Analysis:

Proof that the acceleration of transference of wealth was created by successive rounds of Global QE Liquidity can be seen through the analysis of Luxury brands. Brunswik Corporation is in the business of selling products to those people that have been able to take advantage of Quantative Easing. Specifically, those people that have qualified to use loans to continue to leverage their wealth. Brunswick Corporation has enjoyed over 400% return year over year since the first rounds of QE to the present.

The Majority of Global QE has been government bond transactions between Central Banks and retail/institutional banks. Central Banks purchase massive amounts of government bonds and other securities from banks forcing these institutions to be flush with cash on their balance sheets. The banks then seek to make a return on this money and lend it out. One of the largest beneficiaries of the increased propensity for banks to lend are the few that qualify for loans during a major recession; the wealthy.

Evolution 4.0 Macro Analysis

Brunswick Corp (Manufacture of a wide variety of recreational products such as Sea Ray, Boston Whaler, and other A-Line boats), as well as Mercury and Mercruiser power plants, also further solidifies our "two economy" analysis. That is to say that there is a recovery in progress for "the masses" and a much more dramatic recovery in progress for the wealthy. The combination of reduced rates for large luxury asset loans, reduced lending standards, and increased overall liquidity should see BC continuing its overall uptrend. While we do realize that BC is only one equity in a greater sector, the recovery of equities such as HZO (Marine Max), BC (Brunswick Corp) and others indicate a “luxury recovery”. We should also point out that overall increases in corporate earnings, investment profits, and passive income will also create a “luxury recovery” effect. Additionally Brunswick Corp makes a myriad of commercial / professional grade fitness equipment and other discressionary purchase items.

In terms of a short term trade, we are going to recommend BC at current levels for a mid-short term (current till end of august 2016). Additionally, we are going to be performing a tremendous amount of research on the luxury retail sector in the near future whereupon we can better validate some of the information that Evolution 4.0 has already discovered. We will be sharing that information both here in our commentary section, as well as in WireHaus.

Based upon Evolution 4.0 information, we should see a fair bit of activity in both the luxury / ultra luxury sector as well as discount sector. We will also be performing some equity research on Bombardier (the largest producers of luxury aviation, marine, cycle and power-sports vehicles).