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4. Present research on future economic scenarios: Another source of information would be consensus forecasts of the sector and industry performance. Many investment firms publish their predictions of earnings by firm, industry and sector. Do not rely on a single source but bring together the broad view of as many sources as possible.
5. Demonstrate why these particular sector(s)/industries will outperform the overall market: The last part of this particular project is to demonstrate why these particular sector(s)/industries will outperform the overall market. This requires understanding some of the key drivers in the industry such as consumer spending, consumer spending on durable products. This further requires using a combination of the historic data and interpolation about those relationships and how they will impact the industry in the future. For example, for this section if Consumer Discretionary sector were chosen and the industry Hotels, Restaurants and Leisure, there are likely parts of that industry that are counter cyclical such as McDonalds in the restaurant industry. They typically perform better in low growth or recessionary times while Chili’s and other sit down restaurants generally see a slowdown.