From Standard & Poor's Equity ResearchHere are the notes from Standard & Poor's Investment Policy Committee meeting, held on Wednesdays.

Fundamental Outlook

The disagreement between investors and economists appears to have intensified, as stock prices have begun to drift broadly higher as recent economic data suggest that the economy is slowing down, while several economists say pending data will force the Federal Reserve to hike rates again before yearend.

S&P equity analysts expect year-over-year operating earnings per share growth for the S&P 500 Energy sector to rise 2% by the fourth quarter of 2006 and decline 7% by mid-2007, after the sector's 54% increase in operating per share earnings in the fourth quarter of 2005.

S&P's Asset Allocation