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When Rich Nation Growth Stagnates

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Description: The latest Zacks Market Strategy report holds two provocative insights hailing from advanced (translation--rich) countries. First, rich nations other than the USA struggle to build any real GDP growth momentum. Second, their consumer price inflation looks subdued vis-à-vis the USA too.

The USA is staying only a step ahead of advanced country GDP growth doldrums, with +2.9% GDP growth  for Q3-16. 

On that relatively upbeat note, I found the Zacks Industry Ranks to show lots of medium upgrades -- and no real loser sectors this month.

 Zacks Sector/Industry/Company Telescope -- the USA Consumer is Lively

(1) Materials rise to Very Attractive this month. Big winners are Paper, Metals Non-Ferrous, Building Products-Construction Materials, and Containers & Glass.

Zacks #1 (STRONG BUY) Company: BHP Billiton (BHP)

BHP Billiton is a leader in the global natural resources industry. The Group has high-value and industry-leading positions in aluminum, metallurgical coal, thermal coal, copper, ferro-alloys, iron ore and titanium minerals and also has substantial interests in oil, gas, nickel, diamonds and silver.

(2) Health Care remains at Attractive. The Medical Care industry leads. 

Zacks #1 (STRONG BUY) Company: Wellcare Heath

WellCare Health Plans, Inc. provides managed care services targeted exclusively to government-sponsored healthcare programs, focusing on Medicaid and Medicare. WellCare provides high-quality, affordable healthcare services to members in Florida, New York, Connecticut, Illinois and Indiana.

(3) Info Tech stays at Attractive. Big industry winners are the usual Semiconductors and Misc. Tech.

Zacks #2 (BUY) Company: ST Microelectronics (STM - Free Report)

 STMicroelectronics is a global independent semiconductor company which designs, develops, manufactures and markets a broad range of semiconductor integrated circuits and discrete devices used in a wide variety of microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems.


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