According to Tom Lee, co-founder/Head of Research at [Fundstrat Global Advisors](https://fundstrat.com/firm/our-team/), their top sector picks for 2026 is energy and basic materials.
His reasoning behind these picks as follows:
* These sectors have underperformed the broader market over the last five years. For context, as of early 2026, the S&P 500 gained approximately 87% since 2022, while the energy sector (XLE) returned only about 24% in that same period.
* In the last 75-years, when a sector reaches this specific level of underperformance, it typically marks a major turning point.
* Geopolitical risks favors both groups
What are your top bets on these sectors?