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With AI hype dominating the stock market, you can probably guess and guess correctly that this years top-performing global stock sector is tech. But which sector has come in just a whisker behind it?

Call, text, email or otherwise message your broker: Its a funny index thats barely six years old called Communication Services.

Never heard of it? You arent alone. So what is it, and does it have staying power?
Communication Services mashes growthy, tech-like firms with traditional media and stodgy old telecoms a tale of diverging industries.

Its predecessor was the telecom sector classically defensive, highly regulated, boring, slow-growers. Their steady revenues, big dividends and low volatility make them pretty darned economically insensitive.

Hence, they lead in down markets. Consider: S&P 500 telecom stocks beat the broader index in four of five bear markets since 1990. The exception, 2000 2002, was when fantasies like WorldCom, Global Crossing and Lucent fantastically imploded.

But stodginess cuts both ways. Telecom lagged in four of the last five bull marketshugely. The average underperformance? A whopping 128%. Since October 2022s low, S&P 500 and World Telecom returns are less than half the broader indexes gain.

In 2018, however, index providers S&P and MSCI did some rejiggering maybe a little too quietly that shook up how investors can approach many of these companies.

Namely, they concluded several Silicon Valley giants didnt belong in tech anymore. They were 21st Century takes on communications, profiting more on ads than hardware and software. Their solution?

Combining several tech giants with media companies and defensive telecoms in a new Communication Services sector.

Communications is no longer just about phone lines, wired or wireless. Its also search engines, social media, streaming and online commerce. The old telecom industry is now just 17% of the new sectors market cap globally, lower still in America.

Meanwhile, the Interactive Media & Services industry dominates, comprising 62% of the sector globally. Nearly all of that is American almost 99%. You know the big names Meta and Google parent Alphabet.

But it also includes online recruiting, web-based auto selling and buying firms, and more.

Communication Services also includes the entertainment industry, 15% of market cap home to big streaming and gaming firms (also tech-like!). The other 7% is media cable providers, TV networks and advertisers.

Hence, large parts of this diverse sector act like tech: low-to-no dividends, low barriers to entry, fat gross operating profit margins (GOPMs in accounting lingo), big reinvestment in innovation, buzzy offerings and huge growth.

These tech-like tendencies juice returns in bull marketsincluding 2024s. Hence, the MSCI World Communication Services 19.3% overall return, powered by Interactive Media & Services 29.9% surge. That tops techs 25.5% and cruises past world stocks overall 11.4%.

The sectors entertainment firms are up 14.1%, too. But its telecom segments languish: Wireless and Diversified Telecoms are up just 7.9% and 2.2%, respectively. All parallel trends date to this bull markets October 2022 birth.

Few saw that coming just the opposite, after tech-like Communication Services stocks got whacked in 2022. But sentiment got too sour. Markets looked forward and saw a brighter reality ahead, fueling a rally.

Stocks presciently pre-priced the sectors 46.3% first-quarter profit rebound.

So, can Communication Services keep leading? Yes and no. Telecoms shouldnt lead until the next downturn. While the bull market charges, the sectors tech-like chunk should shine as corporations are toggling to offense after two years of cost-cutting defensive maneuvers. Their enviable GOPMs (see above) enable them to self-finance growth, rendering interest rates feckless. The advertising market, central to many of these firms, should reheat, too.

Bottom line: Diversify across the offensive industries. Go light on the defensive ones.

Ken Fisher is the founder and executive chairman of Fisher Investments, a four-time New York Times bestselling author, and regular columnist in 21 countries globally.

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Sources: QB Ewers not likely to play vs. Bulldogs

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Sources: QB Ewers not likely to play vs. Bulldogs

Texas quarterback Quinn Ewers is not expected to play against Mississippi State on Saturday, per sources, as the Longhorns staff is expected to sit him out in order for him to be fully healthy for the game against Oklahoma on Oct. 12.

A final decision on Ewers is expected later Saturday, per sources, but the decision is trending toward allowing him to use Texas’ week off following the Mississippi State game to get healthy. Ewers has been considered week-to-week since injuring his oblique against UTSA on Sept. 14.

Ewers finished the week at nearly 70%, as he practiced Tuesday, was limited Wednesday and ended up limited in practice Thursday to allow him to fully heal. Per sources, the Texas coaching staff wanted to give Ewers the extra rest to ensure he’d return at full strength.

The decision means that Texas will against start backup quarterback Arch Manning, who will make his first career start in an SEC game. Manning made his first start against Louisiana Monroe, completing 15 of 29 passes for 258 yards. He had two touchdown passes and two interceptions.

Ewers’ oblique injury came in the wake of him displaying one of the season’s best performances at Michigan in Week 2, as he threw for 246 yards and three touchdowns in a blowout Texas win in Ann Arbor.

Mississippi State enters the game on a three-game losing streak, which includes back-to-back blowout home losses to Toledo and Florida. The Bulldogs are trending toward finishing at the bottom of the SEC, as they have one of the country’s worst defenses. They are No. 111 nationally in total defense and No. 107 in scoring defense.

Mississippi State will also be without its starting quarterback, as starter Blake Shapen is out for the year after suffering a shoulder injury against Florida. Michael Van Buren, a true freshman, will make his first career start for the Bulldogs.

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Sources: Georgia DL Williams is a game-time call

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Sources: Georgia DL Williams is a game-time call

Georgia defensive lineman Mykel Williams is a “true game-time decision” for the No. 2 Bulldogs at No. 4 Alabama on Saturday night, according to ESPN sources.

Williams has missed the previous two games with a Grade 2 ankle sprain, which he suffered against Clemson in the opener. He’ll be evaluated in pregame warmups and a decision will be made on his status.

Williams has been limited in practice this week, and it’s expected that if he does play it’ll be at less than 100 percent. He’s also unlikely to play a heavy snap count if he does play, as he’s working his way back.

Williams is a marauding defensive end who is the best player in Georgia’s front seven and is a high-end NFL prospect. ESPN’s Mel Kiper Jr. has him ranked No. 4 overall player for the 2025 NFL draft.

Williams started the season hot before injuring his ankle against Clemson, as he had two tackles for loss and three quarterback pressures in that game.

They will be an onus on Georgia’s defensive line, especially on the ends, to help slow Alabama quarterback Jalen Milroe in Tuscaloosa.

Georgia’s defensive line will benefit from the return of senior Warren Brinson, who is listed as probable after missing the past two games. Sophomore defensive lineman Jordan Hall is questionable for the SEC showdown.

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Sources: Utah’s Rising game-time call vs. Arizona

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Sources: Utah's Rising game-time call vs. Arizona

Utah quarterback Cam Rising, who has been snakebit by injuries the past two years, is again expected to be a game-time decision against Arizona on Saturday night, sources told ESPN.

Rising has missed No. 10 Utah’s past two games after an injury to his throwing hand that he suffered against Baylor on Sept. 7. He missed all of last season after an ACL tear in the Rose Bowl following the 2022 season.

Rising’s status will undergo the same evaluation process with the Utah staff as before the Oklahoma State game last week. He’ll throw the ball pregame, and his ability to deliver spin and velocity on the ball will determine whether he’ll play, per sources.

As Rising has struggled to recover and get back on the field, one factor that could weigh into the decision is the chance to get him back fully healthy in two weeks. Utah has a bye before they play at Arizona State on Oct. 11.

Rising has practiced this week but remained limited as the staff has attempted to rest his finger.

Freshman Isaac Wilson has started the past two weeks, leading the Utes to victories over Utah State in Logan and in Stillwater against the Cowboys.

Wilson has shown both moments of promise and interspersed those with moments that have illuminated his youth. He threw for 207 yards on 17-of-29 passing against Oklahoma State. He also threw two interceptions. He threw for three touchdowns and 239 yards against Utah State.

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