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 Bureau of Labor Statistics (BLS) reported that the U.S. economy generated 275,000 new jobs in February, well above our forecast of 185,000 and the consensus of 200,000. January's result was revised lower to 229,000 from 353,000, and job gains in January and December combined were revised lower by 167,000. February's increase in payrolls and the revisions to January and December took the three-month average to 265,000, which is still above the 12-month average of 230,000 and signals robust hiring. The unemployment rate rose to 3.9% from 3.7%. While this uptick is a sign that the job market is not invincible, our calculations suggest this increase is not enough to trigger the Sahm Rule recession indicator. Average hourly earnings increased five cents month-to-month and are now 4.3% higher year-over-year (compared to 4.4% in January). The average workweek rose to 34.3 hours in February from 34.2 hours in January. Job gains occurred in healthcare, government, food services and drinking places, social assistance, and transportation and warehousing. Employment showed little change over the month in mining, quarrying, and oil and gas extraction; manufacturing; wholesale trade; information; financial activities; professional and business services; and other services. After this morning's report, S&P 500 stock futures rose slightly from pre-release levels. The yield on the 10-year Treasury was little changed at 4.07%. Before the release, futures contracts suggested a 96% probability that the Fed will keep the funds target at 5.25%-5.50% when it meets on March 19 and 20. After the release, the probability dropped, but only to 95%. The chance that the funds rate will be lower after the May meeting (either by 20 or 50 basis points) rose to 31% from 26%.

Rallying Market Ignores Warning Signs: Our Monthly Survey of the Economy, Interest Rates, and Stocks

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 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.

This weekend, in Vegas, it's the Chiefs versus the 49ers. Usher is the halftime show; Tom Brady appears in a commercial; and Taylor Swift fans add a whole new demographic to the fan base. But aside from all that, there is big money at stake. For our list this week, we present possible ways to invest in the Super Bowl.

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.

Here is the list of the Top Picks for 2024 from the Argus team of analysts. The team is deeply experienced, as each analyst has spent ,on average, 25 years on Wall Street and 15 years at Argus Research. As such, our analysts are extremely well-versed in our proprietary fundamental six-point system and the sectors they cover. They also have solid relationships with many of the management teams they cover. But they do not operate in a vacuum. An Investment Policy Committee (IPC) comprised of Director of Research Jim Kelleher, CFA; President John Eade; Chief Compliance Officer & Senior Financial Analyst Kevin Heal; and Director of Financial Institutions Research Steve Biggar provide macro outlooks for the economy, interest rates, earnings, and the stock market. The IPC reviews all proposed ratings changes. Our list below is organized by sector.

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.

Stocks fell on Thursday, extending Wednesday's selloff, as investors weighed a wide range of earnings reports, a tentative labor agreement between Ford and the UAW, and stronger-than-expected GDP data. Shares of Meta fell 3.7%, along with Apple (down 2.5%) and Microsoft (down 3.8%). The 10-year yield pulled back to 4.84%. The Dow fell 0.8%, the S&P 0.7%, and the Nasdaq 1.8%. Crude oil fell settled at $83.63 per barrel, while gold closed near $1993 per ounce.

While not at all a sure thing, the possibility that the Fed might engineer a so-called soft landing is in play. On an admittedly less-impactful basis, insiders may be crafting a soft landing of their own. For the better part of a month, insider-sentiment data from Vickers Stock Research was trending in a bearish direction -- driven somewhat by low transaction volume during earnings season, but more noticeably by bearish spikes in response to the surprise moves from Fitch and Moody's that clouded the outlook for the U.S. economy and the banking sector. But now, we see evidence that insider sentiment is calming while transaction volume is growing (as the end of earnings season nears).

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 Tesla Inc (TSLA); Walmart Inc (WMT); Merck & Co Inc (MRK); Adobe Inc (ADBE) and the Focus List deletions are DraftKings Inc. (DKNG); Dell Technologies Inc (DELL); Thermo Fisher Scientific Inc. (TMO); Coca-Cola Co (KO).

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.

Stocks fell on Tuesday morning as investors weighed a new round of earnings reports along with a month-over-month jump in home prices. PepsiCo shares rose after the company posted stronger-than-expected 1Q results, while GM fell despite above-consensus earnings and higher full-year guidance. Meanwhile, the Case-Shiller national home price index rose 0.2% in February after a 0.2% decline in January. However, the year-over-year increase slowed to 2.0% in February from 3.7% a month earlier. The Dow fell 0.2%, the S&P 0.7%, and the Nasdaq 0.9%. Crude oil traded near $77 per barrel, while gold fell $2 to $1998 per ounce.

Tighter monetary policy is taking a toll on the important consumer sector. Retail sales grew by less than the inflation rate in March, suggesting consumers are buying fewer units or switching to cheaper products. Retail sales rose 2.9% on a year-over-year basis, which was the smallest gain since June 2020. The result from the U.S. Census Bureau was below our estimate for a 4.6% increase and a deceleration from February's 5.9% gain. The Consumer Price Index was up by 5% in March. Discretionary retailers felt the brunt of nine rate hikes from the Fed. Sales at electronics and appliance stores were down 10.3%, furniture and home furnishings stores were down 2.4%, and building materials stores were off 3.5%. With credit card rates at new records, consumers seem reluctant to purchase televisions, appliances, and sofas -- items that may take months to pay off. Tax refunds are down 10.1% from last year and may be a factor. Sales at grocery stores also lagged inflation, rising 5.3% versus an 8.4% rise in the CPI's "food at home" category. Sales at gas stations felt deflation, falling 14.2% year-over-year. The CPI for gasoline declined 17.4% from March 2022, which was elevated by Russia's invasion of Ukraine. Overall, retail sales would have been up 4.8% in March without the drag from gasoline. Sales at food service and drinking places jumped 13.0% from the prior-year period. Excluding this category, retail sales were only up 1.5%. The non-store retailers category, which is dominated by e-Commerce, remained strong, growing 12.3% year-over-year. E-commerce represented almost 15% of retail sales in 2022 according to the Census Bureau. While this report may confirm that the Fed it is making progress, it likely tells investors to focus on retailers with efficient operations and low prices.

Stocks were mostly lower on Tuesday morning, led by declines in the Technology and Communication Services sectors. New data pointed to a continued slowdown in the housing market. The Case-Shiller National Home Price index fell 0.5% month-over-month in January. Year-over-year growth also slowed to 3.8% in January from 5.6% in December. On the earnings front, Walgreen shares rose nearly 4% after the company reported better-than-expected fiscal 2Q earnings, helped by strong pharmacy sales. The Dow rose 0.2%, the S&P fell 0.2%, and the Nasdaq fell 0.7%. Crude oil rose to $73 per barrel, while gold rose $16 to trade near $1970 per ounce.

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.

Stocks fell on Wednesday morning following more 4Q earnings reports and new retail sales data. The Commerce Department reported that U.S. retail sales rose 3.0% from the prior month in January, up from a 1.1% decline in December and above the Bloomberg consensus forecast of 2.0% growth. The results pointed to strength in the consumer economy, but also raised prospects for continued aggressive Fed rate hikes. The Dow fell 0.5%, the S&P 0.5%, and the Nasdaq 0.3%. Crude oil fell more than 1% to $78 per barrel, while gold fell $22 to $1843 per ounce.

Inflation pressures eased again last month in the U.S., continuing a downward trend that began last summer, this based on the Consumer Price Index report released on February 14. But the rate of decline, which had been pronounced over the past few months, slowed somewhat in the report. The Bureau of Labor Statistics reported a 6.4% increase in overall inflation year-over-year through January, compared to a 6.5% rate through December ,and a 9.1% rate back in June. The core rate, excluding the impact of food and energy prices, also declined -- to 5.6% in January, versus 5.7% in the prior month. The consensus forecasts had called for a 6.2% inflation rate and a 5.5% core rate. The overall rate was propped up by energy prices (up 2.0% month-over-month), transportation (0.9%), shelter (0.7%) and food (0.5%). Segments of the economy with stable/easing prices included commodities (0.1%), used cars and trucks (down 1.9%) and medical care services (down 0.7%). Looking ahead, we continue to think that the July 9.1% CPI rate will prove to be the peak reading for the index in this cycle, as the housing market cools, supplies of new vehicles are replenished, and the price of oil stays below $90 per barrel. Even so, the Federal Reserve still has wood to chop in order to bring core inflation down to its target of 2.0%. We continue to look for two 25-basis-point rate hikes by the central bank in 1H23.

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.

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 Raytheon Teches Corporatio (RTX); Biogen Inc (BIIB); Coca-Cola Co (KO); Shopify Inc (SHOP) and the Focus List deletions are Hormel Foods Corp. (HRL); General Dynamics Corp. (GD); AbbVie Inc (ABBV); NXP Semiconductors NV (NXPI).

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.

We anticipate that activity in the consumer sector, which was the primary driver of GDP growth in 2022, will slow as the Federal Reserve continues to raise interest rates and companies keep cutting jobs. The sector is all-important to the economy and accounts for about two-thirds of GDP. The main driver to the consumer sector is the jobs market. While the domestic employment environment is in better shape than it was two years ago, it is starting to show signs of deterioration. Though the unemployment rate is 3.5%, it seems headed inevitably higher in the wake of layoff announcements from high-profile companies such as Microsoft, Alphabet, Amazon.com, Salesforce.com, Goldman Sachs, and Morgan Stanley. Meanwhile, consumer balance sheets appear to be weakening somewhat after multiple quarters of spending growth. A combination of pandemic-related factors -- such as economic shutdowns and aggressive fiscal spending -- resulted in a sharp improvement in household finances in 2020. Indeed, the stimulus program initially lifted personal savings to almost $5 trillion. But that money has been spent, and then some: the personal savings level has come down to $625 billion, below the $1 trillion average level in the decade prior to the pandemic. With savings tapped, a slowdown in the all-important consumer sector seems likely in 1H23. Here are some of our top "cautious consumer" stocks for 2023.

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.

Last week was the busiest of the quarter for corporate earnings, with a fair number of sharp moves in stock prices following above- or below-consensus results or changes in company guidance. Through October 25, Refinitiv reports that 129 S&P 500 companies have announced earnings, with 74% of those coming in ahead of the EPS consensus. The blended (reported and estimated) growth rate for the full quarter, however, is now at 3.3%. That's down from the 4.5% that was expected at the start of the quarter, which is likely a combination of the magnitude of the earnings misses as well as earnings estimates still coming down for those still scheduled to report. Sectors with the strongest beat rates so far have been Healthcare and Communication Services, where 100% of companies reporting have come in ahead of consensus. The biggest laggard has been Consumer Discretionary, where only 47% have exceeded consensus. Energy dominates, with a 119% blended earnings growth rate versus 3Q21, while Financials are at the other end with a 16% earnings decline. Our analysts are always on the lookout for companies that boost their outlooks during earnings season. Management's ability to "raise guidance" can often be a catalyst to strong returns in the quarters ahead. Here is an initial list of BUY-rated companies in Argus coverage for which management has raised guidance or increased its outlook during the 3Q22 EPS reporting season.

The stock market had a wild ride in the trading week ended Friday, October 21, with a big rally on Monday and early strength Tuesday, before the sellers moved in. Wednesday was a mild down day and Thursday wasn't a big downer -- but some nice early gains were lost. Friday, which has not been a good day for stocks for the past five weeks, helped push the market to a strong finish.

The broad market selloff on September 13 still feels raw, and the Federal Reserve has left no doubt that it will fight inflation vigorously for as long as it takes. Stocks, and likely many portfolios, are feeling some pain. In volatile times like these, when selling is widespread, a classic investing strategy is to focus on “best in class” stocks. These are the strongest and most-stable stocks in each sector -- and by looking across sectors, diversification can also be achieved. To get our list this week, we ran multiple screens. We started with the Argus Min-Vol theme model portfolio. As the name suggests, that portfolio includes companies that likely can best withstand market fluctuations. We then shortlisted the group by also screening for financial strength and dividend yield. And, finally, we picked one stock from each of the 11 S&P sectors. The following stocks are our Best in Class for Safety recommendations for September 2022, and all of them currently carry an Argus BUY rating.

Stocks fell on Thursday morning amid continued concerns about unchecked inflation, Fed rate hikes, and a potential recession. Retail sales were stronger than expected. The Commerce Department said that U.S. retail sales rose 0.3% in August following a revised 0.4% decline in July. The Reuters consensus forecast called for sales to be unchanged. The Dow fell 0.2%, the S&P 0.8%, and the Nasdaq 1.3%. Crude oil fell $4 to $85 per barrel, while gold traded near $1680 per ounce.

The major indices turned on the afterburners in July following a difficult June. The S&P 500 soared 9%, regaining all its losses from June. The Nasdaq and the Nasdaq 100 both exploded over 12%, recapturing their June declines and then some. The S&P MidCap 400 and the Russell 2000 rocketed almost 11%. It was the largest 20-day rate-of-change (ROC) for the "500," the "400," and the "2000" since late 2020/early 2021. The Nasdaq and the QQQs saw a better 20-day ROC in early April, which, as we now know, was a bear-market rally.

Last week was the busiest of the quarter for earnings, with many sharp stock-price moves following above- or below-consensus results or changes in guidance. Through July 26, Refinitiv noted that 133 S&P 500 companies had reported earnings, with 76% beating expectations, above the long-term average of 66%. The blended (actual for those reporting and consensus for those still to report) growth rate is 6.2%, near the 5.6% expectation and indicating the "beats" have not been robust. But the sour mood coming into the quarter is being greeted with relief that profit shortfalls and lowered guidance are not rampant. Our analysts always look for companies that boost outlooks during earnings season. Raising guidance can be a catalyst for strong returns in the quarters ahead. Here is an initial list of BUY-rated companies in Argus coverage with raised guidance or increased outlooks during the 2Q22 EPS reporting season.

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.

Stocks rose on Thursday morning after paring early losses. GDP data was weaker than expected. The Commerce Department reported that the U.S. economy contracted at a 0.9% annualized rate in 2Q, below the Bloomberg consensus, which had called for a gain of 0.4%. The second straight quarterly decline in GDP, after a 1.6% drop in 1Q, met a common definition of recession. The Dow rose 0.7%, the S&P 0.8%, and the Nasdaq 0.6%. Crude oil rose 1% to $98 per barrel, while gold fell 2% to $1752 per ounce.

Rapidly rising inflation in 2022 has knocked the stock market into a bear market. While growth strategies have suffered the most, value strategies also have declined. Even year-to-date bond prices are lower. 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 returns are from eras when the 10-year Treasury bond yield was much higher than the current 3.0% 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.

Stocks rose strongly on Tuesday morning, reversing course, at least temporarily, after their worst week since March 2020. Amid deepening concerns about inflation, recession, and Fed policy, investors are looking ahead to Fed Chair Jerome Powell's testimony before Congress later this week. In corporate news, Kellogg shares rose 4% after the company announced that it would split its snack, cereal, and plant-based foods businesses into three independent companies. The Dow rose 2.0%, the S&P 2.7%, and the Nasdaq 3.3%. Crude oil rose 2% to $112 per barrel, while gold traded near $1841 per ounce.

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.

ESG Stocks

Markets have faced difficult times before, with challenging economic environments, wars, disease, banking and housing crises, and inflation much worse than we are seeing now, to name but a few. Of late, stock investors had it very good for a very long time -- but now, finding opportunities requires much more work. There is no secret sauce, but there are principals that are worth reviewing: 1) diversify; 2) look for strong management; 3) look for solid balance sheets; 4) do your homework; and 5) adapt. To assemble this week's list, we looked across several sectors that historically are considered to be the most-shielded from high inflation and high interest rates. We then cross-referenced our coverage universe for companies where our analysts recently raised target prices; that have an Argus Financial Strength rating of at least Medium-High; and that pay dividends of least 3%. Some companies also are featured in our model portfolios (Growth & Income, Equity Income, Growth, and Institutional). Here is our list of companies we believe to be recession-proof, all of which are rated BUY at Argus.

Stocks have struggled this year, with the S&P 500 now down over 12% (excluding dividends) so far in 2022. But not every stock has tumbled. Our analysts have been working through earnings season and have come across several stocks in Argus coverage that have approached target prices. We set target prices through our valuation framework, which includes analysis of historical multiples, peer multiples, and future dividends and cash flows. After adjusting the models for the latest earnings and dividend information -- most of which has been good -- here are some of the stocks for which we have raised target prices over the past month. All of the following stocks are rated BUY at Argus.

Stocks plunged again on Tuesday morning, reversing Monday's gains amid continued concerns about inflation, Fed policy, the war in Ukraine, and the expanding pandemic in China. Housing market data was weak. The Commerce Department said that U.S. new home sales fell 8.6% in March to a seasonally adjusted annual rate of 763,000 units, below the Reuters consensus forecast of 765,000. On the earnings front, PepsiCo shares rose slightly after the company posted better-than-expected 1Q results and raised its full-year sales guidance. The Dow fell 1.7%, the S&P 2.1%, and the Nasdaq 3.2%. Crude oil traded near $101 per barrel, while gold rose to $1904 per ounce.

With the recent strong rally in stocks, there has been improvement in certain indicators of market breadth -- although most remain in intermediate- to long-term downtrends. In the S&P 500, 57% of stocks are above their 50-day average (all breadth data as of the 3/18 close), up from a February low of 24%; 51% of the stocks are above their 200-day, up from a recent low of 36% (which was the weakest reading since June 2020). Large market declines generally happen when this measure falls and stays below 45%, so we would certainly like to see additional improvement in the average '500' stock.

This edition features a roundup of analyst research on the Russia-Ukraine conflict, and Campbell, JD.com, and Guidewire.

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.

Stocks were mixed in volatile trading on Monday morning amid continued concerns about the Ukraine conflict and the impact of Fed interest rate hikes. St. Louis Fed President James Bullard reiterated his call for a 100-basis-point rate hike by June in order to combat inflation. The CME Group's FedWatch tool now projects a 67% chance of a 50-basis-point rate hike in March. The Dow fell 0.5%, the S&P fell 0.2%, and the Nasdaq rose 0.7%. Crude oil rose to $94 per barrel, while gold traded near $1866 per ounce.

The onset of the coronavirus in 2020 knocked stocks into a bear market. Though equities have recovered, the U.S. economy is about to slow down and COVID-19 cases are rising again as virus variants spread. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Daily prices can swing wildly, as they did in January 2022 when the S&P 500 fell 5%. 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 not sub-2.0%. 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. Here are some of the stocks featured in the portfolio.

The onset of the coronavirus in 2020 knocked stocks into a bear market. Though equities recovered, the U.S. economy is about to slow down and COVID-19 cases are rising again as virus variants spread. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Daily prices can swing wildly, as they did three times in 2021 when stocks dropped 4%-5% in a matter of a few days. 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 returns are from eras when the 10-year Treasury bond yield was not sub-2.0%. 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.

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.

Stocks were mixed on Friday morning following new consumer spending data and earnings reports from Apple and Amazon. The Commerce Department said that U.S. consumer spending rose 0.6% in September, above the Reuters consensus of 0.5% but down from 1.0% growth in August. Apple shares fell 3% after the company posted lower-than-expected fiscal 4Q revenue and warned of continued supply-chain constraints. Amazon also fell following disappointing 3Q results and weaker-than-expected fourth-quarter guidance. The Dow rose 0.2%, the S&P fell 0.1%, and the Nasdaq fell 0.2%. Crude oil traded near $82 per barrel, while gold fell $26 to $1777 per ounce.

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 Tyson Foods, Inc. (TSN); Charter Communications Inc. (CHTR); Williams-Sonoma, Inc. (WSM); Cloudflare Inc (NET) and the Focus List deletions are Sanmina Corp (SANM); EBay Inc. (EBAY); Coca-Cola Co (KO); Pinterest Inc (PINS).

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.