Sector favorability – position for late cycle

Source: Wells Fargo Investment Institute, as of June 30, 2022. Past performance is no guarantee of future results. Best performers are based on the performance of S&P 500 Index sectors during a particular point in the economic cycle (early, mid, late, recession) either since September 1989, the inception date for the S&P 500 sector indexes (traditional best performers) or during the most recent full economic cycle, 2009–2020 (recent best performers).

Key Takeaways

  • We favor increased emphasis on quality over cyclicals in our sector positioning and selectivity at the subindustry level.
  • We currently favor the Information Technology, Energy, and Health Care sectors.