Value to be found in sectors that have lagged since 2001

Investor attention is heavily focused on the resource and capital goods sectors. This is with good reason given the apparently unstoppable rise of consumption trends and infrastructure spending requirements in developing economies, most notably China. Yet, despite underperforming since their May highs, the mining sector has outperformed the Datastream World Market index by 275% and the oil and gas sector by more than 150% since the first quarter of 2000. This suggests some of the potential upside from these trends is already discounted even if valuation multiples are a long way from the st...