What does GDP growth revision mean for investors?

When GDP growth is revised upward, it means the economy performed better than initially thought. This often signals stronger corporate earnings potential and can boost investor confidence, making it an attractive time to consider stocks tied to economic growth.

What are consumer discretionary stocks?

Consumer discretionary stocks are companies that sell non-essential goods and services, like retail, restaurants, and entertainment. These businesses tend to do well when consumers have extra money to spend and confidence in the economy.

How does consumer spending drive economic growth?

Consumer spending makes up about 70% of the U.S. economy. When people buy more goods and services, it creates demand for businesses, leading to higher revenues, more jobs, and overall economic expansion.

What does 'cyclical exposure' mean?

Cyclical exposure means investing in companies whose performance closely follows economic cycles. These stocks tend to do well during economic growth periods but may struggle during downturns, making timing and economic health important factors.

Why focus on U.S. domestic companies?

U.S. domestic companies benefit directly from American economic strength, consumer spending, and business investment. They're less affected by international trade issues and can capitalise more directly on local economic resilience.

16 handpicked stocks

U.S. Market Resilience Explained | Growth Sectors

The U.S. economy's growth was revised up to 3.3% for the second quarter, driven by strong consumer spending and business investment. This theme identifies companies poised to benefit from this economic resilience, particularly those in consumer-facing sectors and technology.

Han Tan | Market Analyst

Updated today | Published at September 2