Summary List PlacementAfter tech and consumer discretionary sectors dominated the last decade, investors should look elsewhere for the next market leader, Mark Haefele, chief investment officer of UBS Wealth Management, said Wednesday.
After a decade of outperformance, the sectors have a 25% chance of becoming one of the two worst-performing groups over the next 10 years, UBS said. They only have an 8% chance of repeating their previous outperformance.
“We think the next decade will reward investing in the disruptors in sectors undergoing technological transformation,” Haefele said.
Here are the 4 sectors set to be the “next big thing,” according to the world’s largest wealth manager.
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Investors should look elsewhere for the “next big thing” following a decade of tech-sector dominance, Mark Haefele, chief investment officer of UBS Wealth Management, said Wednesday.
Since 1973, sectors that led the market over an entire decade had just an 8% chance of repeating that performance over the next decade, according to the bank. Such sectors also had a 25% chance of becoming one of the two worst-performing groups over the next 10 years. If the trend holds up this year, it may be time for investors to ditch tech and consumer discretionary stocks and look for a new market front runner, the world’s largest wealth manager said.
“If the last decade was about investing in the technology sector itself, we think the next decade will reward investing in the disruptors in sectors undergoing technological transformation,” he added.
Here are the four subsectors Haefele pointed to as possible market leaders over the next decade.
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The 5G wave
The launch of the first 5G-capable iPhones ushered in a new phase of expansion for the new communication technology. More people will have access to 5G than ever before, and various kinds of businesses can leverage faster connections to transform over the next decade, Haefele said.
Enablers of the 5G rollout will be the first to benefit, according to UBS. Companies that build and install 5G towers will enjoy a 1900% jump in 5G capital spending over the next five years. Smartphone manufacturers will also thrive.
Once 5G becomes the new standard, firms that can build novel use cases present …read more
Source:: Business Insider