Contents

Double Dip Unlikely 4
2Q10: Equity Correction 4
Global Economic Outlook 5
Forecast Changes 7
Rates and FX 7
Credit Outlook 8
Global Corporate Earnings 9
Valuations 10
Global Market Outlook 12
Regional and Sector Allocation 13
Earnings Momentum 13
The Model Now 16
Regional and Sector Recommendations 17
Regions 21
AC World
USA
Europe ex UK
United Kingdom
Japan
Developed Asia Pacific
Emerging Markets
Sectors – Level One 39
Energy
Materials
Industrials
Consumer Discretionary
Consumer Staples
Health Care
Financials
IT
Telecom Services
Utilities
Sectors – Level Two 61
Energy
Materials
Capital Goods
Commercial Services
Transportation
Autos & Components
Consumer Durables
Consumer Services
Media
Retailing
Food & Staples Retailing
Food Beverage & Tobacco
Household & Personal
Health Care Equipment & Services
Pharma & Biotech
Banks
Diversified Financials
Insurance
Real Estate
Software & Services
Tech Hardware
Semiconductors
Telecom Services
Utilities
Global Market Intelligence 89
Appendix A-1 99