1) Technical Setups, Markets and Sectors, p. 3-9
a. U.S.—All major indices and most sectors at 52-week and/or all-time highs. Best setups include Technology, Health Care, Consumer
Cyclical, Cap Equip, Retail, and Transportation.
b. Currently favored international markets include Japan, Germany, Hong Kong, India, South Korea, and Taiwan.
2) Growth for Countries and Sectors, p. 10-11
a. GDP Growth—Less than 3% estimates for key developed markets in 2017 and 2018. India, Taiwan, Thailand, South Korea, the
Philippines among emerging markets with 3%+ growth expected in 2017 and 2018.
b. Median sales/EPS growth (>$1B companies)—U.S., Hong Kong, India, Brazil, Taiwan have most favorable EPS growth expectations.
c. P/E valuations—Hong Kong is the only developed market in which stocks are trading at a median of <1x PEG. In four emerging
markets—India, Brazil, Taiwan, and South Korea—stocks are trading at a median of <1x PEG.
3) Actionable Focus List Names – Favored Areas, p.11-14
a. U.S. – Technology, Health Care, Cyclicals, Cap Equip, Retail, Transportation
i. Actionable names include Salesforce.com, United health and Home Depot
b. Developed – Consumer Cyclical, Capital Equipment, Technology, and Health Care stocks from Japan, Hong Kong, and Germany
i. Actionable names include Tokyo Electron (RG@N.JP; 8035:JP), CSPC Pharmaceutical (CPHA.HK; 1093:HK), and Nemetschek
(NEMX.DE; NEM:GR)
c. Emerging – Consumer Cyclical, Capital Equipment, Technology, and Financial stocks from India, Taiwan, and South Korea
i. Actionable names include Vakrangee (VKS.IN; VKI:IN), Indiabulls Housing (IEZ.IN; IHFL:IN), and Koh Young Technology
(KYX.KR; 098460:KS)
