UBS Australia's Richard Schellbach recommends investors stay with cyclicals as tech sector faces headwinds. The investment strategist appeared on Bloomberg's The Asia Trade to discuss his outlook for Australia's market. Schellbach's advice comes as traditional industries show resilience against technology sector challenges.

ASX 200 profit growth is projected to top 10% in 2026, driven by miners and banks outperforming tech stocks. The divergence reflects how resource-rich Australian companies benefit from global economic cycles while tech earnings face contraction. This performance gap suggests a sector rotation underway in the Australian market.

Schellbach's analysis indicates investors should reallocate from technology to cyclical sectors for better returns. The 10% growth forecast for ASX 200 demonstrates economic resilience in Australia's corporate landscape. This divergence creates opportunities for portfolio rebalancing as market fundamentals shift between traditional and technology-driven businesses.