‘Safer’ ends of the market look like the bet for 2020

S&P 500 sector indexes more associated with holding up in down markets look to be the better performers over the next 12 months. Earnings growth data from FactSet show utilities, financial and health care as the top performing sectors by year-over-year earnings growth, while energy, consumer discretionary and industrials are projected to see the most significant declines in earnings.

Earnings for the S&P 500 index is expected to decline -0.4% over the next 12 months. As of Nov. 1, third-quarter earnings fell 2.7% compared to the same quarter a year ago. That decline included both reported and projected numbers. If it remains negative, it will be the third consecutive quarter of year-over-year declines, FactSet reports.