Manulife's Sandy Sanders on the sectors that will lead the US

Tax cuts boosting earnings

Followers of the market know that as of May 2018, the current economic cycle is now the second longest in US history having just matched that of the March 1991 - December 1969 recovery that lasted 106 months.

Most market prognosticators argue we are late cycle and debate what 'inning' we are in or whether it is time to consider if a bear market is imminent. For our part, we are focused on bottom-up fundamentals and we like what we see. The recent US tax cuts are clearly boosting earnings but also have the potential to drive a multi-year investment cycle.  Technology companies and industrial stocks, in our view, will be interesting bellwethers in this regard. With the US essentially at full-employment, we believe companies will need to invest in productivity and begin to substitute capital ...