📊 Rotation Favors Physical Assets?

Good Morning Investors,

Capital is moving away from crowded technology trades and toward cyclical exposure, particularly energy and resource linked areas. Energy stocks posted strong gains and mining related names held firm, supported by commodity price strength and selective regional expansion stories. This shift has provided relative support for companies tied to physical assets, even as technology driven segments face valuation pressure.

Volatility remains elevated. Options activity suggests traders are hedging against further swings, while tariff uncertainty and mixed signals from the Federal Reserve continue to cloud funding and earnings visibility for smaller businesses. In this environment, leadership is rotating rather than disappearing. Cyclical and commodity exposed names appear better positioned near term, but disciplined position sizing remains essential as macro uncertainty and technology driven volatility persist.

Matthias Schneider
Editor at Analytica Investor