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These over-loved sectors may be poised for a drop

RBC’s chief U.S. market strategist Jonathan Golub published an interesting research report in search of market sectors that are “over-loved” and poised for ignominious stock price declines.

Mr. Golub believes that autos, energy and technology hardware companies are at the biggest risk. In each case, a large majority of analysts rate companies as “buys,” but over the past three months, optimism has been waning, and downgrades are beginning to occur.