Performance for 2016 is going to be greatly determined by how investors treat this sell-off. Per the usual routine of buffonery brought on by memories of past painful episodes, those seeking gains will misallocate assets, most likely by an overallocation into cash.
This is a developed market led global economy. Developed markets run on technology and finance. Therefore, the reasonable conclusion is that technology and financials are where the greatest potential for returns lie.
The great commodity bull, while being oversold and ready for a bounce, is now a misallocation play. Meaning that it will take some time before the assets that were irresponsibly allocated into this segment unwind. During an unwind trading becomes sloppy, investors become frustrated and it is generally a shit shoe, marked by periods of severe angst.
This is the 90s all over again. Tech is king. The US is the growth engine. Emerging economies are risk-laden. Commodities are something you eat and put in your car.
Most importantly, dips brought on by emerging market fears are to be bought hand over first.
