Investors looking for leaders to continue the market rally should stop looking at miners, despite their recent performance, Nick Nelson, European equity strategist at UBS, told CNBC.
Last week saw commodities climb to six month highs, boosted by an agreement in Brussels over a second Greek bailout package.
“I’m concerned as to whether they [miners] can continue with the strong leadership that they’ve had, you might have to start looking at other sectors”, said Nelson.
Global miners including Vale and BHP Billiton have both seen profits hit by lower commodity prices caused by the ongoing European downturn .
“Miners of the 30 sectors across Europe have the worst earnings momentum right now”, added Nelson.
Gold miners have seen their share prices underperform the price of the precious metal over the past 15 months.
So if not with the miners, just where should markets look for leadership?
“Media and software have done a little bit better, they are very globally exposed”, said Nelson.
He added that it may be time to move away from domestic corporates, and highlighted US companies as worth taking a look at.