Exuberance

(1) Is the middle class really distressed? (2) Consumer Optimism Index near previous cyclical highs. (3) Misery Index lowest since Feb. 2008. (4) Spending less on gasoline, more on health care. (5) Bullish sentiment is almost off the charts. (6) Energy and REITs inflate S&P 500 forward P/E. (7) Expensive sectors are the defensive ones such as Consumer Staples and Utilities, which makes them less defensive. (8) Financials & IT sectors are relatively cheap. (9) Focus on overweight-rated S&P 500 Health Care.