Our rating on the Consumer Discretionary sector is Over-Weight. Many employees are splitting time between work and home, and we expect efforts to refresh the home space to continue. Consumer Discretionary niches including housing and retail have been strong, and we look for this strength to extend to the recovering auto industry going forward. The sector accounts for approximately 11% of the S&P 500. We think investors should consider allocating 13%-14% of diversified portfolios to the group. The following are the Consumer Discretionary picks we use in our model portfolios and our Focus List.