Fund manager says tech trade is a cooked goose and suggests alternatives for investors

• Equity markets around the world received a double boost at the start of the week, with Joe Biden emerging as U.S. president-elect and a coronavirus vaccine breakthrough from Pfizer and BioNTech.
• Smead urged investors to beware of high "stock market failure" in the S&P 500 and focus instead on opportunities outside of the index which more closely track the U.S. economy.

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The trade in big tech companies has run its course and investors should be betting on the U.S. economy rather than the S&P 500, according to Cole Smead, president and portfolio manager at Smead Capital Management.

Equity markets around the world received a double boost at the start of the week, with Joe Biden emerging as U.S. president-elect and a coronavirus vaccine breakthrough from Pfizer and BioNTech. Despite the overwhelmingly optimistic news, however, Wall Street has yet to close at all-time highs having touched intra-day records during Monday's session.

Tech stocks have lagged their more cyclical counterparts in recent sessions, suggesting a rotation away from the growth area of the market which drove the recovery from March's Covid-19 crash and saw the S&P 500 close above 3,580 points on September 2.