By Jeff Cox, CNBC.com Staff Writer
NEW YORK ( CNBC) -- Improving expectations for the economy also will change investor perspectives, likely sending them to companies that do better as the outlook improves. Evidence of sector and in particular industry rotation for the new year was quickly evident Thursday, when December sales results for big-box retailers trailed expectations while high-end stores did much better and the stocks performed accordingly. That's likely to be part of a trend if the economic gains hold. "This new mindset will allow investors to stretch investment horizons and focus attention on the potential value of what ultimately will be 'peak recovery cycle earnings,'" James Paulsen, chief investment strategist at Wells Capital Management, wrote in an analysis for clients.
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