Gartmore’s John Bennett believes the long-haul recovery will favour technology and healthcare sectors alongside specific stocks able to deliver above average growth.
Bennett, manager of the £1.9bn European Selected Opportunities fund and Continental European and Pan European Sicavs, says 2010 will be a year of leadership change in the market and is positioning his funds to benefit from the crossover.
Bennett says: "In many ways we see the market's behaviour in the period March to December 2009 as reminiscent of that from March to December 2003: the fact investors jumped upon the leaders of the prior bull run - driven by technology in 2003 and China plays in 2009 - gives food for thought."
Bennett says the catalyst for change is most likely to be the growing acceptance of a long-haul recovery across the developed world.
"This should favour sectors such as technology and healthcare as well as those specific stocks capable of above average top line growth. Without proclaiming a ‘nifty-fifty' era, we may be in for re-rating of the few genuine growth stocks," he adds.
Bennett also believes western world equities may come to be seen as offering the world at a discount, while the more popular eastern variety offers the same world - but at a premium.
