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 that year. Stocks have recovered and a new bull market has started, but gains have been largely driven by only a handful of high-tech companies. Inflation remains an issue and the Federal Reserve has yet to lower rates. Is a recession in the offing? With all the uncertainty, 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.

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 that year. Stocks have recovered and a new bull market has started, but gains have been largely driven by only a handful of high-tech companies. Inflation remains an issue and the Federal Reserve has yet to lower rates. Is a recession in the offing? With all the uncertainty, 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.

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 approximately 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.

We have reviewed our recommended sector allocations this month, and based on the analysis we have adjusted our current sector Over-Weight, Under-Weight, and Market-Weight recommendations. Our multi-factor model includes a performance-ranking system, which assigns points for monthly, quarterly, and YTD sector performance versus the benchmark S&P 500; current sector P/E versus five-year P/E, with points awarded for discount to S&P 500 current versus five-year P/E delta; two-year earnings growth, with points awarded for exceeding the benchmark average and for EPS acceleration; relative performance to the sector group average; sector conviction, meaning BUY rating percentage per sector versus total Argus BUY-rating percentage; and PEG ratio, with points awarded or subtracted based on sector PEG ratios below or above the group average. Our process yielded 42 total points, for an average sector score of 3.8. To earn an Over-Weight designation, sectors had to score five points or above; for Market-Weight, three or four points; and for Under-Weight, two points or below. Our current Over-Weight sectors are Healthcare, Communication Services, Financial, and Information Technology. Our current Market-Weight sectors are Consumer Discretionary, Energy (raised from Under-Weight), Industrials, Real Estate and Utilities. Our Under-Weight sectors are Materials and Consumer Staples. We suggest that advisors and investors leverage this consistent and comprehensive process to adjust sector weightings within their diversified equity portfolios, with a primary focus on the largest sectors.