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One Of Wall Street's Biggest Bulls Ends Six-Year Overweight on Consumer Stocks in Favor of Energy


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A pumpjack on the Bakken oilfield (Photograph by Larry Macdougal/AP Photo)

After six years of betting on the U.S. consumer, one of Wall Street's biggest bulls is now boosting his exposure to an unloved segment of the market.

Thomas Lee, managing partner at Fundstrat Global Advisors, has opted to upgrade energy to overweight while downgrading the consumer discretionary sector, citing rising labor costs and the inverse relationship between energy and consumer-oriented stocks over the past decade and a half.

"We are downgrading consumer discretionary to neutral, on potential for margin compression in late-2016 from strengthening labor markets (reversing a six-year overweight on the sector)," wrote Lee.

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