2023 US sector outlook
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 investors 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. That sector, which includes Meta Platforms, Alphabet, and Netflix, lost 36%.*
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 for a year when investors start to pay attention to fundamentals again—and stock selection matters.
Where should investors 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 digitized world.
Read on to discover Fidelity’s ideas across 11 sectors.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Past performance is no guarantee of future results.
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
As with all your investments through Fidelity, you must make your own determination whether an investment in any particular security or securities is consistent with your investment objectives, risk tolerance, financial situation, and evaluation of the security. Fidelity is not recommending or endorsing this investment by making it available to its customers.
Indexes are unmanaged. It is not possible to invest directly in an index.
Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.
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