Sector Rotation

The current bull trend for equities was born on a powerful wave of AI optimism.  After 2 years that catalyst has matured and is now tiring and investors are looking for what’s next.  We think the current setup shows elevated potential for a correction in equity prices.  AI companies have been priced for successful outcomes, but economic data is sending conflicting messages while inflation and high prices remain with us.  Long story short, the US equity market has priced in a lot of bullish promises around AI, economic “Soft Landing” and the re-emergent Greatness of America.  Reality needs to deliver.