Sector Views: Our Stock Sector Outlook

Kevin Gordon discusses Schwab's analysis of the 11 sectors that make up the S&P 500.
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    Liz Ann Sonders and Kevin Gordon discuss the evaluation of various sectors of the economy and the relaunch of Schwab Sector Views, which provides perspective and ratings on the 11 sectors of the S&P 500. The new version of Sector Views incorporates a quantitative and qualitative approach, using factors such as growth, quality, sentiment, stability, and valuation to determine sector rankings. The ratings are based on a 6-to-12-month time horizon. Currently, the outperform sectors are energy, financials, and materials, while real estate and consumer discretionary are underperforming. Kevin emphasizes the importance of considering concentration risk and using sector views as a tool for informed decision-making.

    Additionally, Kathy and Liz Ann discuss the recent PCE report and its impact on the stock market. They also talk about the Fed's data-dependent approach and the factors that influence Fed decisions. They mention upcoming economic data, including the CPI and PPI reports, as well as the small-business survey.

    To learn more about stock sectors and how they are defined, check out "Stock Sectors: What Are They? How Are They Used?" 

    The show will be on break next week but will return with a new episode on March 22.

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