Highlights Portfolio Strategy As growth becomes scarce, investors flock to sectors that are slated to outgrow the broad market and shy away from the ones that are forecast to trail the SPX’s growth rate. This week we rank…

Neutral The battle of the titans of the U.S. media sector for control of Sky PLC was resolved over the weekend, with Comcast emerging victorious, besting 21st Century Fox's bid for the pay-TV firm. While increasing global…

Highlights Portfolio Strategy Selling in the S&P cable & satellite index is overdone. Recession type valuations fully reflect the acquirer discount heavyweight CMCSA is still commanding. Lift exposure to neutral. Content…

Underweight (Upgrade Alert) The narrative for the S&P cable & satellite index this year has been an ongoing (and accelerating) loss of share of the consumer's wallet (second panel) as over-the-top providers continue to…

Underweight The S&P cable & satellite index was under intense pressure last week as the quarterly release of subscriber churn numbers for the constituent companies came out worse than expected. In particular, CHTR saw its stock…

Underweight Declining share of the consumer's wallet has been the narrative for media stocks for several years (top panel). Millennials, currently the largest U.S. age cohort, have been "cord cutting" and preferring…

Highlights Portfolio Strategy Quantitative tightening, a rising fed funds rate and higher prices at the pump are all bearish consumer discretionary stocks. Downgrade exposure to underweight. We are executing this interest rate-…

Neutral Cable & satellite stocks received a much-needed boost last week when it was announced that the head of the U.S. Federal Communications Commission planned to scrap the landmark 2015 rules to guarantee net neutrality. Such a…

Demand for movies and entertainment has come under pressure lately as depicted by the deceleration in recreation PCE. The softness in the ISM services survey confirms the negative signal from the consumer. All of this is transpiring in…