Record Tech Selling, A Massive Market Rotation... And No Fed Rescue
The great rotation
Technology is getting liquidated, hedge funds are hitting the exits, and the S&P 500 ex-AI is outperforming by an extraordinary margin. Yet beneath the rotation, earnings growth is increasingly concentrated, market breadth remains weak, and defensive flows are accelerating. The Fed is unlikely to come to the rescue anytime soon, with inflation pressures persisting and further tightening still a risk. Is this a healthy rotation, or the beginning of something more sinister?