Top three sector picks

As a result of the credit crunch, the UK and other parts of the world are facing major structural changes. UK economic recovery will be muted and two-thirds of earnings will come from overseas. So which sectors will perform the best in 2010?

Gains on equities in 2010 will be less substantial than in 2009. This is partly because I feel the UK, and to a lesser extent the US and other developed economies, will face major structural challenges in 2010 and beyond as a result of the credit crunch. To some extent, the fast growth of emerging economies will act as a counterbalance, but I still feel the UK economic recovery will be muted. Fortunately, for the stock market, about two thirds of the UK earnings come from overseas and one should bear this in mind when considering sector preferences. Below are three sectors I believe will do...