Despite gloomy investor sentiment due to under performing financial and energy stocks, there are reasons to be optimistic this year due to the consumer and tech sectors.
A survey by asset manager Fidelity of almost 200 equity and fixed income analysts found that the developed market consumer sector is expected to be the driver of growth this year. This is due in part to an increase in purchasing power thanks to low energy prices and low inflation. The sector scored 5.6 on Fidelity’s sentiment indicator, more than 10% above the all-sector average.
The survey found that management confidence in both consumer staples and discretionary goods has turned the outlook from negative to neutral.
According to the firm’s findings, when growth is scarce, companies or markets that are genuinely innovative attract a premium. The impact of innovation is seen most keenly in healthcare and IT, shaping market opportunities and revenue streams.
“The sector that scores highest on the direct impact from disruptive technologies is IT. New technologies are disrupting the landscape faster than ever, reshaping revenue pools across a number of industries and creating a host of opportunities,” said Michael Sayers, director of research art Fidelity.
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