Bloomberg Intelligence's 'Equity Market Minute' 6/13/2018

Gina Martin Adams discusses the concept of a 'sheep market,' which is neither a strong bull nor a bear market. It is influenced by earnings growth and policy headlines. The focus is on cyclical sectors outperforming defensive ones, and the importance of profitability and leverage in a volatile environment with rising interest rates. The recommendation is to focus on high ROAE, high-margin companies and avoid high-debt entities.

What does the speaker suggest about gearing portfolios in a more cyclical orientation?

What is the significance of profitability relative to leverage according to the speaker?