Consumer Discretionary

CONSUMER DISCRETIONARY: Another Concentrated Sector

We recommend a market-weight position in the S&P 500 Consumer Discretionary sector. At first glance, the sector looks strong. Its stock price index is near a record high, forward earnings is rising, and the forward P/E has held in the mid-20s (chart). The surface-level fundamentals are attractive. Look closer, and the strength narrows. Consumer Discretionary is up just 2.3% ytd, ninth among the 11 S&