The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

At midday, the stock-market slump continues on concerns about interest rates. Blue-chip stocks are leading most market indices lower today, as Dow Jones Industrial Average is off 1%. The yield on the 10-year Treasury note is down slightly to 4.70%. Gold and oil are flat today, while Bitcoin is up 1%.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Energy may be an Under-Weight sector based on our model, but that doesn't mean it shouldn't be in diversified portfolios. Energy now accounts for 3.7% of S&P 500 market cap; over the past five years, the weighting has ranged from 2% to 10%. We think investors should consider allocating 3%-4% of their diversified portfolios to the Energy group. The sector is outperforming thus far in 2024, with a gain of 14.8% compared to a 7.4% increase in the S&P 500. It underperformed in 2023, with a decline of 4.8%. The sector includes the major integrated firms, as well as exploration & production, refining, and oilfield & drilling services companies. Here are the Energy companies that either are on our Focus List or are used in our model portfolios.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Capital One Financial Corp. (COF); Dominos Pizza Inc (DPZ); Novo Nordisk (NVO); Shell Plc (SHEL) and the Focus List deletions are Alcon Inc. (ALC); Expedia Group Inc (EXPE); Morgan Stanley (MS); Exxon Mobil Corp. (XOM).

In this edition, we explore if Generac's clean energy strategy holds water; light vehicle demand in China; and the near-term oil and gas supply market; and FMC, Spirit AeroSystems, and Green Thumb Industries.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022. That's a recent rarity, as for the past decade-plus, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks that year. While growth stocks have retaken the lead since 2023, the Federal Reserve continues to keep interest rates high to fend off inflation. This could possibly cap multiple expansion for growth companies in coming quarters. In any event, the value sector is the place to achieve income.

In this edition, we explore oil and gas exploration and production opportunities; Ameriprise manages to get a fair value estimate raise; we launch coverage of Kongsberg Gruppen; and Royalty Pharma, Hanesbrands, and Orsted.

Stock indices dipped in October 2023, with the S&P 500 falling a sharp 10% off summer highs. Looking at 13F filings of big institutional portfolios, we see that the big guns were busy last quarter taking advantage of that dip. Citadel Advisors went on a buying spree, adding to its $100 billion portfolio across a range of sectors. As did D.E. Shaw, adding to its $67 billion portfolio. Vickers Stock Research, a subsidiary of Argus Research Group, analyzes insider trading and institutional stock ownership. Form 13-Fs, which institutions must file to report their holdings, are due 45 days after the end of calendar quarters and have come in for 4Q24. We review 13Fs of major activists to determine core holdings and new purchases. Activist investing is now less about generating a short-term return and more about achieving long-term returns through an active management/investor partnership. Based on data from Vickers, here are some recent new purchases and key holdings of activist investors, as well as other high-profile money managers.

Weekly Tee Up: Walmart and Nvidia

In this edition, we explore oil and gas exploration and production opportunities; Ameriprise manages to get a fair value estimate raise; we launch coverage of Kongsberg Gruppen; and Royalty Pharma, Hanesbrands, and Orsted.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Rapidly rising inflation in 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Stocks have recovered thus far in 2023, but gains have been largely driven by only a handful of high-tech companies. Inflation remains high and the Fed continues to raise rates. Is a recession in the offing? With all the uncertainty, is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history, indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Global economic growth is expected to slide in 2023 and inch even lower in 2024, according to the latest World Economic Outlook from the International Monetary Fund (IMF). Growth in 2023 is the same in the latest forecasts as previously forecast in the summer. But 2024 dropped slightly this round. The IMF said that growth is predicted to remain "weak" by historical standards. By the numbers, the world economy is expected to expand 3.0% in 2023 and then 2.9% in 2024, after having grown 3.5% in 2022. All of these rates are below the long-term historical global growth rate of 3.8%, due largely to the impact of inflation and higher interest rates. For industrialized economies (the U.S., Europe, Japan, etc.) growth is forecast at a miniscule 1.5% in 2023 and an even lower 1.4% in 2024. The U.S. is expected to generate growth of 2.1% in 2023, with a drop to 1.5% in 2024, according to the IMF. This is better than the prior forecast. For emerging economies (China, India, Russia, Brazil, Saudi Arabia, etc.), forecasts call for growth of 4.0% in both 2023 and 2024. The clear leaders are expected to be China and India, with average growth for the two years of 4.6% and 6.3%, respectively. Even those growth nations have different drivers: population growth in India and productivity growth in China, as GDP/capita increases. We factor global growth forecasts into our asset-allocation models -- and based in part on the slow global growth rates, we continue to recommend that investors over-weight portfolios toward U.S.-based securities. Global stocks generally represent value, but the risks to growth are high.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

For a second week, insider-transaction data from Vickers Stock Research is generating bullish signals. Last week, insider-transaction volume was low as trading restrictions are in place during earnings season. But trades that did occur resulted in bullish insider-sentiment measures, especially open-market transactions (the most meaningful when considering sentiment).

We have an Under-Weight rating on the Energy Sector. Companies in the sector saw their earnings crushed in the last quarter and things looks bad for this quarter as well. Still, there are individual names we like and there is a trend of consolidation in the sector, all of which has piqued our interest. Exxon Mobil is buying Pioneer Natural and Chevron is buying Hess. We think this might prompt other big oil companies to look around as well. We think Conoco Phillips could be in the market to scoop up a smaller company (possibly Devon, EOG, or Marathon Oil). We don't think there will be any regulatory hurdles, as consolidation could lead oil prices to retreat, which would help the overall U.S. economy as inflation is still high in many areas. So it would seem to be in the government's interest to allow these deals to go through. Energy accounts for only about 3%-4% of total S&P 500 capitalization, but the sector often acts as a hedge to the broader market -- so having exposure to the group is important. Energy tends to zigs when the S&P 500 zags. Indeed, in 2022, the S&P 500 declined 19.4% while the Energy sector advanced 59%. In the August-October period of 2023, the S&P 500 fell more than 8% while the Energy sector declined only 3%. The following is a list of names we like overall in both Oil and Energy.

Monday Tee Up: War, Earnings, Powell

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Major stock indices bottomed on August 18 and then traced out higher closing and intraday highs on August 24 and 25. It is not surprising that the bottom and subsequent rally in stocks coincided with the recent short-term top in Treasury yields.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy companies and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks over the past year. Meanwhile, the Federal Reserve continues to lift interest rates to fend off inflation, which could possibly cap multiple expansion for growth companies for a few more quarters. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.2%, compared to the 0.9% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy companies and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks over the past year. Meanwhile, the Federal Reserve continues to lift interest rates to fend off inflation, which could possibly cap multiple expansion for growth companies for a few more quarters. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.2%, compared to the 0.9% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

This should be an interesting week for Treasuries, as the recent movement in the five- and 10-year yields has been, for many, confusing from a technical perspective. The recent action suggests to us that the opinions of market participant are all over the place and indecision is extremely high.

Monday Tee Up: Will CPI Have a Two- or a Three-Handle?

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Rapidly rising inflation in 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Stocks have recovered thus far in 2023, but gains have been largely driven by only a handful of high-tech companies. Inflation remains high and the Fed continues to raise rates. Is a recession in the offing? With all the uncertainty, is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history, indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.

Rapidly rising inflation in 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Stocks have recovered so far in 2023, but gains have been driven largely by only a handful of high-tech companies. Inflation remains high and the Fed continues to raise interest rates. Is a recession in the offing? With all the uncertainty, is it time for investors to cash in their chips? Perhaps not yet. We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. As well, those returns are from eras when the 10-year Treasury bond yield was much higher than the current 3.8% level. So what's a potential equity strategy for investors amid all the uncertainty? Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods. We have designed a portfolio of companies followed by Argus Research analysts that are BUY-rated and have impressive Min Vol characteristics of low beta, high yield, high market cap, strong balance sheets, and low risk profiles. Some of the stocks featured in the portfolio are listed below.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

It's important to keep an eye on the intermarket relationship between stocks and commodities versus the U.S. Dollar Index (USD) and Treasury yields. The USD is not far from breaking out of a trading range that started back in November 2022, while the 5- and 10-year Treasury yields are close to breaking out of declining channels that have been in place since October 2022. Additionally, the 2-year yield (already at 4.87%) is quickly approaching 5% and its 5.05% recovery high from March 8.

In this edition, a sunny outlook on energy transition amid clouds; Medpace Holdings; Australian retail's momentum; and AGL Energy, Delta Air Lines, and Interactive Brokers.

As of the session's end on Tuesday, the S&P 500 (SPX) was up 19.8% on a closing basis from its low on October 12, 2022. Rounding up just a bit, the SPX has officially entered a new bull market. The Nasdaq has popped 30% from its closing low on December 28, 2022, while the Nasdaq 100 has soared 37% from its close on November 3, 2022.

In the typically strong month of April, the stock market laid an egg -- with most of the major indices posting minimal returns, and the small- and mid-cap stocks losing minor ground. The S&P 500 rose 1.5%, the Nasdaq was flat, and the Nasdaq 100 gained 0.5%. The Dow Jones Industrial Average was the big winner, up 2.5%. The S&P MidCap 400 fell 0.80% and the Russell 2000 dropped 1.8%, thanks to heavy exposure to small- and mid-sized banks.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Value stocks -- a market segment that includes high-yield stocks -- outperformed growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. But the tide turned in 2022. The rollout of COVID-19 vaccines gave a lift to some of the cyclical companies (energy companies and regional banks) that had lagged in recent quarters, and value stocks outpaced growth stocks over the past year. Meanwhile, the Federal Reserve continues to lift interest rates to fend off inflation, which could possibly cap multiple expansion for growth companies for a few more quarters. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.2%, compared to the 0.9% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

There is a large dichotomy between sentiment when the stock market is in a bear market and sentiment when the stock market is in a bull market. For many, this is hard to grasp. But it happens, cycle after cycle.

Strong Start: Our Monthly Survey of the Economy, Interest Rates, and Stocks

Rapidly rising inflation 2022 knocked stocks into a bear market. While growth strategies suffered the most, value strategies also declined. Even bond prices were lower last year. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. As well, those fixed-income returns are from eras when the 10-year Treasury bond yield was much higher than the current 3.5% level. So what's a potential equity strategy for investors amid all the uncertainty? Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate.

In this edition, Fortune Brands remodels its business, capital allocations matter more, utilities stocks set to settle, and Nordstrom, Moderna, and Align Technology.

The S&P 500 (SPX) broke out of its trading range early last Monday, but gave it all back over the balance of that same day. The Fed may be trying to put a ceiling on the stock market, as Fedspeak remain steadfastly hawkish -- spoiling the attempted breakout even though inflation is clearly easing. But even after the ugly reversal the past Monday, the index rebounded over the following three days, completing a small breakout. Traders may be getting a bit tone deaf when it comes to the Fed's constant banter, as interest rates across the curve sit on the precipice of a large breakdown.

Stocks slumped throughout 2022, as the S&P 500 entered a bear market in June and closed 19% lower for the year. Value stocks generally outperformed during the year, as the Dow Jones Industrial Average fell 9% while the Nasdaq Composite dropped 33%. The leading sectors were value-oriented, such as Energy, Utilities, Consumer Staples, and Financial Services. The average stock in the Argus Universe of Coverage declined 13% during the year, and the median stock declined 15%. The average BUY-rated stock dropped 11%, while the average HOLD-rated stock fell 17%. Will investors continue to favor value in 2023? Will high inflation drive continued outperformance in Energy?

Argus has published its latest Portfolio Selector, which features its popular Focus List. Each month, Director of Research Jim Kelleher, CFA, surveys the team of Argus Research industry analysts for their timeliest recommendations out of the company's fundamental universe of over 500 stocks. The Focus List typically includes 30 stocks: turnover is high, as Jim typically adds three or four new stocks per month. Below are the latest additions, all of which are rated BUY at Argus.

The stock market was hammered again on Thursday, as the lingering hawkish talk from Fed Chair Powell on Wednesday increased the anxiety level of investors. The S&P 500 (SPX) fell 100 points, or 2.5%, and is off 5% from Tuesday's intraday high at 4,101. While we don't consider Thursday's close to be a breakdown of support at 3,900, the SPX did close at its lowest level since November 9. NYSE decliners led advancers by 2,189 issues, while NYSE advances/issues and advancing volume/volume was weak between 16% and 19%. The five-day/13-day exponential moving average (EMA) crossover turned back to bearish after just a few days of being bullish.

Each December, Argus surveys its team of analysts, seeking their best ideas for the upcoming year. The Argus Research team draws on its experience (the average analyst has 18 years of Wall Street experience and 10 year at Argus), as well as the company's proprietary six-point research framework and earnings and valuation models to make the calls. Argus analysts cover the waterfront (every sector from Energy to Healthcare to Consumer to Technology), so each sector is represented. This year's list includes some long-time favorites, as well as some recent upgrades and new initiations. The list includes mostly large-caps and mid-caps, and both growth and value stocks. We will be going over the list in more detail during our January webinar and detailing why each stock has been selected by the covering analyst. In the interim, more information on each of these BUY-rated stocks is available on our website.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Corteva Inc (CTVA); Dell Technologies Inc (DELL); Exxon Mobil Corp. (XOM); Thermo Fisher Scientific Inc. (TMO) and the Focus List deletions are Linde Plc (LIN); Lilly(Eli) & Co (LLY); ASML Holding NV (ASML); EOG Resources, Inc. (EOG).

ESG (Environmental, Social, Governance) investing continues to grow. According to the Global Sustainable Investment Association, global assets under management in ESG strategies had grown to $40 trillion in 2020, up from $23 trillion in 2016 and on track for $50 trillion by 2025. As assets have flowed in over the past 40 years, Sustainable Impact Investing has evolved. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol and firearms. In time, the list of industries to avoid increased to include soft drinks, fast food, and oil and gas, among numerous others. Performance of these initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as the climate, hunger, poverty, disease, shelter, and workers' rights. At Argus Research, we track ESG developments at specific companies as part of our Management analysis - one of the six points in our proprietary Six-Point Fundamental Approach. In addition to reviewing and measuring the ESG proclamations from the companies under coverage, we partner with an ESG research firm, the JUST Capital Foundation, and leverage its analysis and insights on the topic as well. JUST Capital's mission is to drive measurable corporate change to create a stakeholder-centric, inclusive form of capitalism that reflects the priorities of the American public. JUST utilizes a combination of data-driven research and strategic engagement in an attempt to shift norms and practices in corporate America and the financial markets. JUST ESG Custom Ratings rank stocks in the Russell 1000 on criteria using a scale of 1-100. Drawing on the JUST Capital rankings, we have compiled focused lists of companies followed by Argus Research that are in position to have this type of "sustainable impact" on the environment, workplace, community, and marketplace. These firms have exemplary records not only in delivering on the bottom line, but also in improving the environment, contributing to community relations, and showing respect for their employees. We also have a Theme Model Portfolio based in part on the ESG criteria. To build the Argus U.S. ESG Model Portfolio, we applied financial concepts such as industry diversification, income generation, risk reduction and growth at a reasonable price to our various lists. In addition, all stocks must be on the Argus BUY list. Here are the new stocks that have been added to the Argus U.S. ESG Model Portfolio. For more JUST Score details on these companies, and others in the portfolio, please visit the JUST Capital website, www.justcapital.com.

Sustainable Impact Investing, or ESG investing, is gaining traction not only with Argus Research clients but also with the global investment community. BlackRock CEO Lawrence Fink, who oversees approximately $9 trillion in assets, announced in January 2020 that his firm would be investing in companies that are making progress on sustainability. He doubled down in his January 2021 letter, calling on company managements to disclose their plans for making their businesses "compatible with a net-zero economy" by 2050. As assets have flowed in over the past 40 years, Sustainable Impact Investing has evolved. The discipline, originally known as Socially Responsible Investing, focused at first on excluding companies that conducted business in South Africa, or participated in industries such as tobacco, alcohol, and firearms. Performance of these initial strategies lagged, and the approach has been modified. Now, instead of merely identifying industries to avoid, the discipline promotes "sustainable" business practices across all industries that can have an "impact" on global issues such as climate, hunger, poverty, disease, shelter, and workers' rights.

Stocks soared on Thursday morning after lower-than-expected inflation data raised prospects for a slowdown in Federal Reserve rate hikes. The Labor Department said that its core consumer price index, excluding food and energy costs, rose 6.3% from the prior year in October, down from 6.6% in September and below the Bloomberg consensus forecast of 6.5% growth. The Dow jumped 2.7%, the S&P 4.1%, and the Nasdaq 6.1%. Crude oil rose to $87 per barrel, while gold rose $33 to $1747 per ounce.

Value stocks -- a market segment that includes high-yield stocks -- are outperforming growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. In nine of the past 10 years, growth stocks have topped value stocks. But the tide may be turning. The rollout of COVID-19 vaccines has given a lift to some of the cyclical companies (energy companies and regional banks) that have lagged in recent quarters, and value stocks have kept up the pace with growth stocks in the past year. Now, the Federal Reserve lifting interest rates to fend off inflation, which will likely cap multiple expansion for growth companies. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.1%, compared to the 0.8% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

Investors hunting for stocks that reasonably balance long-term growth prospects and current value characteristics might want to look at companies in the Energy, Financial Services, Healthcare, and Basic Materials sectors. These are among the industry groups that are currently selling for PEGY (price/earnings)/(growth+yield) ratios at or below the S&P 500's ratio of 2.0x. To generate the PEGY ratios, we use the P/E ratio for each sector based on forward earnings for the numerator. For the denominator, we average the growth rates for the past five years along with two years of forward estimates in order to achieve a smoother, less-volatile earnings trend. We then add the current yield, to approximate total return. Premium-valued sectors with low growth rates include Consumer Staples and Utilities. Our Over-Weight sectors include Healthcare, Financial Services, Industrial, Materials and Energy. Our Under-Weight sectors include Consumer Staples, Consumer Discretionary, and Communication Services.

Stocks fell on Friday morning after a better than expected July employment report raised prospects for continued aggressive Fed rate hikes. The Labor Department said that the U.S. economy added 528,000 nonfarm payroll jobs last month, up from a revised 398,000 in June and well above the consensus forecast of 250,000. The official unemployment rate ticked down to 3.5%, below the consensus of 3.6%. Wage growth was higher than expected. Average hourly earnings rose 0.5% from the prior month and 5.2% from the prior year, both above consensus estimates. The Dow fell 0.2%, the S&P 0.6%, and the Nasdaq 1.1%. Crude oil rose more than 2% to $90.50 per barrel, while gold fell $15 to $1792 per ounce.