Cameron Gleeson

So if you look at the S&P 500 right now, the expected earnings growth this year is over 20%, which is very high.

But if you look at the sectors that have the strongest earning growth and they've seen the largest upgrades in their earnings since March, it is the IT sectors, IT and communication services, but it's also energy and it's also materials.

Mm-hmm.

you don't typically think of these as high growth sectors.

And if I'm looking to invest and I want to see something which is going to deliver earnings growth, well, I want to think about those sectors.

And sort of why is that?

Well, there's obviously a couple of things at play.

And in terms of energy, even beyond AI, obviously what's going on in the Middle East is of concern.

And we have a view that

that you will see higher or structurally higher energy prices, even with the resolution in terms of this crisis in Iran.

And that's good for energy stocks.

And their earnings growth for this year is gone from 25% to 50%, incredibly high.

Energy stocks are very cheap relative to other sectors.

They're trading at a PE of around about 14.

So they offer value from a geopolitical hedge.

But then from an AI perspective, you know, having exposure to commodities that are going to be used in this build-out is really important as well as, you know, we've got to think a bit about the extra power requirement and, you know, what company is going to benefit from that.

So that's really the story.

Yep.

Yep.

So number one, copper.