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With some early signs of economic recovery, we believe that hotel occupancy will improve in the fourth quarter of 2009 and in 2010.

The largest drivers of steel consumption have historically been the automotive and construction markets, which make up more than 50% of total steel consumption.

The next five years are expected to reflect a significant imbalance between new product introductions and patent losses.

High levels of product inventories (particularly gasoline), along with still higher supplies, will limit any sustained crude gains, in our view.

Earlier this year, quite a few alternative energy companies were in the trough. These companies have recovered from their lows.

Smaller, niche companies may accelerate hiring as the United States garners resources to protect ground troops and strategic computer networks.

Though almost all carriers are expected to post negative earnings in 2009, we favor Southwest Airlines and JetBlue going forward.

Both new and existing home sales have increased during the last four consecutive months and are now 32% and 17% above their recent lows, respectively. We like AGNC and SPG.

The U.S. restaurant industry, which constitutes fast food, casual dining and upscale chains, is facing its toughest times in three decades.

We see growth potential in companies dealing with cardiovascular devices and surgical equipment, blood related products, and associated consumables.

Companies in the telecommunications industry continue to be at the forefront in terms of mergers and acquisitions.

While the bigger banks benefited greatly from the various programs launched by the government, many smaller banks are still in a very weak financial state.

The U.S. Electrical Products industry is highly fragmented, with the largest suppliers together accounting for only a small percentage of total sales.

Our near-term (6-18 months) outlook for the coal industry has improved somewhat from our previous neutral sentiment to a more positive undertone.

Our view is that oil should be able to hold onto its recent gains and consolidate around current levels, provided this favorable economic view remains in place.

The strong relative performance of retailing stocks thus far has been due to low expectations, "less bad" sales declines and cost cutting efforts. We discuss Whole Foods, Winn-Dixie and Safeway.

Long-term growth of the healthcare sector overall continues to be fuelled by aging of the population and decisions in Congress related to government funding. We discuss UHS, MD and AGP.

As the recession continues, hotel industry operating metrics are showing no signs of improvement as both business and leisure travelers are cutting back. We would continue to avoid lodging companies such as Starwood and Marriott.

While there are pockets of opportunity in the sector, we think the recovery will be slower than anticipated by the market. We are favorable on DRI and BWLD, but not on BJRI or RRGB.

In this environment, we like well-capitalized companies that have adequate liquidity to fund maturing debt at least through 2010. We like Avalon Bay and Vornado.

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