Summary
- The recent decline in technology stocks is viewed by us as a rebalancing, not a sector rotation, with tech expected to resume market leadership.
- Technology has outperformed healthcare since 2023, but recent months show healthcare rising and tech declining, interpreted by many as sector rotation.
- Current sentiment indicators do not signal extreme bullish or bearish conditions, suggesting the correction or rebalancing phase is not yet complete.
- A true rotation would be healthier for the market, but prevailing conditions point toward continued tech-driven gains and the risk of a bubble.
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With the recent decline in technology stocks and the rise in other sectors, a number of analysts think the bull market’s going through a rotation. We don’t think so. We think it’s going through a rebalancing. Once finished
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