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Reconsidering Post-Midterm Sector Positioning

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We remain overweight defensive sectors and may not get completely cyclical after midterm elections, despite favorable seasonality for cyclical sectors. Our study shows our defensive SHUT Index tends to outperform 12 months after significant earnings growth rate peaks. The S&P 500 is set to reach a major earnings growth rate peak in Q4 2018.

Ned Davis Research | Equities | U.S. Sector & Industry Comment | Weekly

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