Consumer product stocks have had a tough few weeks, as renewed strength in the U.S. dollar threatens to undermine sales prospects. However, there are reasons to be cautiously optimistic, especially in relative terms. Consumption has a…

This year's exodus from casual dining stocks has been justified on the basis of overvaluation and deteriorating industry performance. The National Association of Restaurants (NAR) survey of current performance has dipped into…

Highlights Portfolio Strategy Boost restaurant stocks to neutral, as same-store sales should improve next year. A further upgrade requires evidence of top-line traction. The exodus from health care stocks represents an overreaction…

After vaulting out of the gate at the start of this year, leisure product stocks have endured a steady bout of profit-taking. However, there are no signs of a change in trend. In fact, relative performance is starting to rebound at a…

While we recently boosted the broad consumer discretionary index to overweight, we continue to avoid the auto components sub-group. Relative earnings prospects remain poor. The second panel of the chart shows that relative profitability…

The latest housing data paint a bullish picture for the S&P homebuilding index. New home sales are soaring, and are rapidly regaining as a share of total home sales. Demand for new homes is well supported by increased mortgage…

Leisure product relative stock performance is setting up for another leg up. The share price ratio endured a brutal bear market, becoming extremely oversold as company-specific woes caused a short selling frenzy. However, a major trend…

U.S. consumption is the strongest economic link. Consumers are benefiting from low fuel costs, historically cheap borrowing rates and increasing capital availability. Wage growth is outpacing nominal GDP growth, consumer income…

The equity rally has been in a holding pattern, with some tactical fraying around the edges.