The consumer discretionary sector is by far the most attractive sector (for me) at this time. The sector is expected to see high-single-digit earnings growth this year and market-leading, low-double-digit earnings growth next year. This growth is driven by labor market trends that have the number of workers at an all-time high, wages growing by +3% annually, and unemployment at record lows.
The Conference Board's Consumer Confidence Index moved up in May. The move was bigger than expected and a sign of underlying consumer strength. The index reading of 134.1 is nearly 5 points above