What Types of Stocks Should You Own in a Slowing Economy

By John Kozey: The days of big families aren't over. Putting growth investing and value investing criteria together produces 45 offspring -- stocks that look interesting for both types of investors. A Thomson Reuters StarMine analysis searched for companies with earnings and revenue growth rates 50% above current market rates, but also with forward 12-month P/E ratios at or below the S&P 500 long-term average of 15.

By Talley Leger:In this article, we provide some healthy reminders about the impact of slowing global growth on U.S. profits, payrolls and stock market dynamics. As we illustrate on the following pages, slowing global growth, weighed down by a flat-lining European economy, points to a continued deceleration in S&P 500 earnings growth. In turn, weakening corporate profit trends portend slower payroll growth ahead, which is an environment typically characterized by falling share prices.

That rally, when it starts, could see us through the rest of the year, but some sectors are better positioned than others. MoneyShow senior editor Tom Aspray explains the sectors and plays he’s most excited about as the second half unfolds. What started as a fairly dismal week in the stock market finished on a positive note, as financial stocks finished the week very strong. This was helped by the 17% increase in earnings from Wells Fargo (WFC), which sent its stock surging over 3%. Stocks also responded well to the long-awaited conference call with JPMorgan Chase (JPM).

Parsimony Investment Research submits:If you have been following my posts the past few weeks, you'll know that I am a big believer in sector rotation strategies for domestic equity exposure. We are in the middle of a defensive shift that I believe is signaling a market top (Is Sector Rotation Signaling a Market Top?).

Dividends Beating Bond Yields by Most in 15 Years More U.S. stocks are paying dividends that exceed bond yields than any time in at least 15 years as profits rise at the fastest pace in two decades.

Hickey and Walters (Bespoke) submit: