By A dramatic sector rotation gripped global markets this week as investors abandoned growth stocks for defensive havens, reshaping portfolio allocations across asset classes.
Sector Performance:
- Big Tech: $300B market cap erased (Nasdaq -4.1%)
- Energy Outperformance: Exxon (+5.2%), Shell (+4.7%) on supply fears
- Consumer Staples: Unilever (+3.1%), Procter & Gamble (+2.8%)
Rotation Drivers:
- Yield Curve Shift: 2s10s inversion deepened to -48bps
- Commodity Shock: Middle East tensions pushed oil volatility to 62%
- Duration Risk: Tech’s avg duration of 12 years vs 4 for energy
Portfolio Strategy Shifts:
• Hedge funds increased shorts in ARKK ETF by 32%
• Pension funds reallocating 1.5% from growth to value
• Retail investors bought $4.2B in gold ETFs