Sector and Geographic Rotation Continues

This episode reviews a market rotation from mega‑cap tech into cyclicals and international stocks: equal‑weighted S&P outperformed while the cap‑weighted S&P declined, with utilities, real estate and materials leading and financials and communication services lagging.

Volatility stems from fading hopes for easy monetary policy, sticky inflation, and higher long‑term yields, prompting investors to shift into laggards and abroad (notably Japan and emerging markets) even as earnings revisions slow and factor divergences widen.

Takeaway: the rotation away from U.S. growth stocks continues, but risks from bond‑market repricing or policy mistakes could trigger a broader de‑risking.

For a copy of this week's Doll's Deliberation click on the following link February 17 or go to www.crossmarkglobal.com for additional insight and investment solutions.