EFTA Document EFTA01459744

8 February 2016 US Equity Insights In defense of Banks, despite a tough 2016 and delay in hikes We cut 2016E S&P EPS from $120 to $118 almost entirely at Financials. We also cut our 2016E S&P DPS (dividend per share) from $44 to $43 mostly at Energy and Financials. We raise our allocation to Banks and lower our allocation to Telecom from OW to EW and make our OW on Utilities smaller. Bank EPS is likely down 5% in 2016 rather than up 5% as we previously thought, as only for 2 Fed hikes in