Out-of-favour sectors to emerge as frontrunners

We see 2010 as a year when market leadership changes. Concern about such a view is it feels consensual.

Nevertheless, we see the leaders of the post-March 2009 rally as likely to roll over in favour of new leaders. Thus, popular areas such as resources, commercial real estate and emerging market plays look vulnerable. Taking up the baton, we see sectors such as pharmaceuticals, technology and even tobacco. Digging a little deeper, the technology sector has been in a stealth bull market for at least the last 18 months. As mean reversionists, we are often drawn to sectors that have served their penance. In tech’s case that penance was a long one: eight to nine years to be precise. It had ...