The Investopedia Express with Caleb Silver Slip-Sliding Through Sector Rotation
Nov 17, 2025
Keith Lerner, Chief Investment Officer and Chief Market Strategist at Truist Wealth, discusses the current volatility in the markets and whether it's just typical sector rotation or the sign of larger issues. He sheds light on historical correction patterns and the necessity of pullbacks in bull markets. Lerner also explores a rally in bonds, offers insights on ETF trends, and warns about risks in concentrated tech investments. As eyes turn to Nvidia’s quarterly results, he emphasizes that understanding earnings and demand signals is crucial for investors.
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Use Weight-Of-Evidence For Allocation
- Use a weight-of-evidence approach combining history, economy, fundamentals, and technicals when allocating.
- Avoid trying to predict exact turns; focus on probabilities and revisit analysis when price action diverges from fundamentals.
A Two-Speed Economy Is Driving Outcomes
- The economy is two-speed: high-income households benefit from stock and housing wealth while lower-income groups remain squeezed.
- Aggregate spending is still driven by the high end, implying a muddle-through outlook.
Diversify Beyond Tech With Bonds And Gold
- Maintain diversification with quality fixed income and modest gold alongside equities to reduce portfolio volatility.
- Use pullbacks to reassess concentration in tech and rebalance if your portfolio causes persistent stress.