Q: Lately I’ve noticed that aside from AI tech, financial, and gold stocks, most other sectors seem to be sliding. Are we in a rotation phase right now? Would love to hear your thoughts—any idea when the rest might start to move?
5i Research Answer:
We think there is some rotation happening but also with central bank decisions very recently as well as being in the thick of earnings, markets sometimes just need to digest all of the developments. Earnings continue to look pretty good so far with no obvious cracks we are seeing at this stage and we think stocks are just 'churning' a bit as markets sort out earnings season.