Leading Sectors

(1) Three outperforming sectors: Health Care, Consumer Discretionary, and IT. (2) They aren’t cheap, but they can grow earnings. (3) Overall outlook for revenues and earnings growth is lackluster. (4) Industry analysts tend to be overly bullish about prospects for long-term growth. (5) Is the trend growth rate 10%, 7%, or 5%? (6) Investors are also optimistic given record-high PEG. (7) More upside for profit margins of some sectors. (8) Financial engineering can also boost earnings per share. (9) Why Goldman hates buybacks. (10) Lower prices boosting oil demand, but supply increasing faster. (11) Focus on market-weight-rated S&P 500 Energy.