If you want to leapfrog the leaders of the next bull market, you need to look ahead — not back, according to Kevin Barry, chief investment officer at Summit Financial. That means not relying on previous winners, like technology. The sector has been crushed in this year’s bear market, leading some to wonder if the selloff has presented a buying opportunity. “History has shown us that the leaders of the last bull market have not been the leaders of this bull market, at least for the last 50 years,” Barry said. Instead, energy outperformed in the ’70s, but consumer staples led the bull market in the 1980s, he said. Tech rode the wave in the late ’90s and it took 20 years to get back to those heights, Barry said. This year, tech-heavy Nasdaq Composite is down about 30%. “The idea of ’When does technology become cheap enough to buy’ is the wrong idea,” said Barry. “You should be focusing on, ‘What’s going to dominate?'” When it comes to what could lead the market through the next bull market, energy looks promising, he said. Barry. “My analysis shows that the amount of capital reinvestments made by the firms themselves was not sufficient to increase energy supply and reliability and so I think. [energy] There’s a good chance you’ll do better,” he said. The sector is also showing signs of overall and relative leadership, he said. [Inflation Reduction Act] there are some negative things about fossil fuels, but despite that the XLE is still roaring,” he said. more than $187 million in 2022, according to FactSet Conversely, more than 60% has lost the high-tech ARK Innovation ETF, led by Cathie Wood, this year but has seen positive inflows, Barry said. Data from FactSet shows the fund this year restocking materials used in the conflict between Ukraine and Russia, he said. Finances could also be ready up front, especially insurance. For example, as the cost of home repairs rises, people may be increasing their coverage, he said. insurance at relatively high n ew, compared to everything else that is doing well,” said Barry. While insurance is the best part of finance, regional and small banks should also do well. People are still using their credit and debit cards, which provide income in the form of fees and interest, the loan business is still doing well and the banks are taking advantage of higher interest rates, Barry said. . Overall, he likes small-cap stocks over large-cap as leaders of the next bull market, value over growth, US over international funds and equal-weight over funds by market weight. That could mean investors moving money out of the market-weighted SPDR S&P 500 ETF and into something like the Invesco S&P 500 Equal Weight ETF , he said.