Find out where Fidelity's sector managers have found the most compelling potential opportunities for 2023 and beyond.
2022 has provided a stark lesson on why advisors should care about sectors. The year's top-performing sector, energy, delivered a total return of 54% year-to-date through mid-December.* Compare that with the year's worst performer, communication services.
Looking to 2023, there are clearly risks on the horizon. But as Eddie Yoon, Fidelity's veteran health care sector portfolio manager puts it: "A lot of negative sentiment has already been priced into stocks." That backdrop could set the stage to pay attention to fundamentals again.
Where should advisors be looking? Our sector managers have unearthed plenty of potential opportunities for 2023 and beyond—from plays on the green-energy transition in utilities to opportunities stemming from the tight real estate market to potential beneficiaries of the long-term shift to an increasingly digital world.
Read on to discover Fidelity's ideas across 11 sectors.
Explore the 11 Equity Sector Outlooks
*Energy sector performance is represented by the S&P Energy Select Sector index. The S&P Energy Select Sector index comprises those companies included in the S&P 500 that are classified as members of the energy sector, with capping applied to ensure diversification among companies within the index. Communications services sector performance is represented by the S&P Communications Services Select Sector index. The S&P Communications Services Select Sector index comprises those companies included in the S&P 500 that are classified as members of the communications services sector, with capping applied to ensure diversification among companies within the index. Data as of Dec. 9, 2022.
It is not possible to invest directly in an index.
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the authors and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
References to specific investment themes are for illustrative purposes only and should not be construed as recommendations or investment advice. Investment decisions should be based on an individual's own goals, time horizon, and tolerance for risk. This piece may contain assumptions that are "forward-looking statements," which are based on certain assumptions of future events. Actual events are difficult to predict and may differ from those assumed. There can be no assurance that forward-looking statements will materialize or that actual returns or results will not be materially different from those described here.
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Because of its narrow focus, sector investing tends to be more volatile than investments that diversify across many sectors and companies. Sector investing is also subject to the additional risks associated with its particular industry.
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