“Industry analysts are mostly very optimistic about the outlook for earnings growth for the S&P 500 and most of its sectors. The consensus expected long-term earnings growth rate (LTEG) over the next five years is 10.3% per year on average,” according to Yardeni Research.
The research firm notes that in terms of LTEG, financial services expectations are the third-highest among all sectors, trailing only consumer discretionary and technology. Financial services as a group has a short-term earnings growth rate of 13%, trailing only consumer discretionary, according to Yardeni. [Look to Bank ETFs in a Rising Rate Environment]
Speaking of rising interest rates, perhaps it is just a coincidence that the Utilities Select Sector SPDR (NYSEArca: XLU) is usually the worst-performing sector SPDR in July and the only one of the nine to usually post a loss in the seventh month of the year.
Materials Select Sector SPDR
