As investors look towards a more bullish stock market, one asset management strategist says that “fundamentals seem to matter again,” with the energy sector continuing to see an upward trend and technology no longer at the top of the leaderboard. 

“It’s not just technology anymore — actually, technology is kind of in the middle of the pack,” said  David Nelson, chief strategist at Belpointe Asset Management, in an interview with BNN Bloomberg on Tuesday. 

“When was the last time you saw financials on the leaderboard? Energy is now the number two sector with a bullet,” he added. 

Nelson pointed to the underperformance of Apple Inc., which struggled in 2024, with shares declining 12 per cent this year, compared with a gain of 7.42 per cent for the Nasdaq 100 Index, according to Bloomberg News. 

“I think Apple's underperformance speaks to a large degree what’s happening right now. It’s actually a home run for active managers,” Nelson told BNN Bloomberg.

Despite the technology giant’s underperformance, Nelson said that tech is not out of the game. 

“I think tech has legs — it’s just going to be the right names. And that’s what I like about this market right now. Fundamentals seem to matter again.”

“We don’t have zero interest rate policy anymore. Quantitative easing is gone. Back then the tide lifted all boats. Right now the right stocks are going up and the right stocks are going down. I think that’s a very good, very healthy market,” he said.

Nelson also said that too much optimism could be a point of caution.  

“Having said all this bullish stuff, maybe the biggest risk right now is that everybody feels like I do: everybody’s pretty bulled up.”

To watch the rest of Nelson’s interview with BNN Bloomberg, watch the video above.