Global Rotation Kicks In As Buzzy Trades Fade

By Jan-Patrick Barnert, Bloomberg Markets Live reporter and strategist

Investors are going back to old favorites and 2024 laggards as the buzzy tech trade stumbles and as European markets face election-related stress.

It’s normal equity-market behavior when things go south: You hide, you seek alternatives, you hedge, you wait. Investors have already started favoring defensives over cyclicals amid political uncertainty in France. But there is also another rotation in the works.