Equity Sector Views: Overweight Energy, Underweight Consumer Staples
- By John Tierney
- 5 min read
Summary
- Overall, we remain underweight equities versus other asset classes due to the rising rate environment, and the risk of an economic slowdown and weaker earnings, which is not priced into the market now.
- We add the major US and European equity indices. We are overweight the S&P 500 and underweight the Russell 2000, NASDAQ 100, and European indices.
- We retain our overweight on energy and clean energy and move healthcare to overweight.
- We move consumer staples to underweight. It is overvalued by our earnings and cashflow measures, and earnings season has revealed many companies are struggling to pass on rising costs.
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