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UBS Reveals Top Sectors for 2010

With only a handful of days left in 2009, you're likely examining various market insights, trying to position yourself for the year ahead.

As you make your moves, it may help to know that UBS has put out some interesting predictions.

Jeremy Zirin, chief equity strategist at UBS Wealth Management says to stick with procyclical investments in 2010. (That is anything that benefits when the economy is picking up.)

Specifically, he’s bullish on three sectors, energy , materials and tech . Although he feels the best gains stick with the trade.

“Valuations are still reasonable and I don’t think the market has priced in recovery even if the recovery is tepid,” he says.

And ahead of the broadcast Zirin told our producers that energy, materials and tech should also benefit because ‘more than half of the stimulus money will be spend in 2010’. That massive amount of money going into the economy, combined with relatively low interest rates should bode quite well for these sectors.

Zirin also has some interesting predictions for 2010 on the economic and political fronts. They follow:

2010: Things That Will Happen
-Recovery Will Continue
-Geopolitical Threats Will Emerge
-Taxes Will Rise
Source: UBS Wealth Management Research

2010: Things That May Happen
-Commercial Real Estate May Hit Crisis Levels
-Fed May Remain on Hold
-Additional Stimulus Pkg. May be Passed
Source: UBS Wealth Management Research

2010: Things That Won't Happen
-Inflation Will Not Be A Problem
-Dollar Will Not Collapse
-Municipal Credit Crisis Will Not Develop
Source: UBS Wealth Management Research


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