Strategy

Year started with Industrials sector in the lead as investors shift their focus on industrials in light of possibly more IT solutions diffusing into industrials which will affect productivity and output and sector could have received a second leg of growth. IT sector is also doing good but is behind industrials. Utilities lag but the performance is also positive. In this report we have focused on materials sector summarizing various ideas to point important sector issues. We are positive on the materials sector. We think that China model of using materials sector as a fuel for overall growth and infrastructure investment is a model for any emerging markets country and developed markets as well. Materials sector does have a long term acting catalyst such as ongoing infrastructure development. This will support steel, aluminium, nickel and copper producers and this is not the whole of the materials sector.
One recent and more temporal factor example is the demand for palladium metal in light of increasing global focus on ecology.
Another is the demand for gold in light of ongoing shenanigans about a global financial system stability where the US dollar has such a dominant position

Sector	PEFy1	PEFy2	2019Growth
Consumer Discretionary	14.45	12.58	14.40
Consumer Staples	17.27	15.82	10.36
Energy	12.06	10.42	18.01
Financials	11.07	9.87	11.85
Health Care	15.37	13.71	11.81
Industrials	14.30	12.62	12.96
Information Technology	15.55	13.42	15.18
Materials	11.12	10.08	10.99
Real Estate	14.69	13.41	12.93
Telecommunication Services	12.05	10.66	13.31
Utilities	11.38	10.27	11.74