The Bottom Line

We believe the sectors looked at today don’t provide a great read-through from an investment perspective:

• Consumer Discretionary: we like PMV at current levels but don’t see a macro backdrop to justify increasing our exposure.
• Consumer Staples: Metcash remains our preferred vehicle for income and some growth.
• Insurance: With the major insurance stocks approaching our target levels, we have turned more cautious.
• Industrials: We still like BXB, but the risk/reward has diminished around $22.