Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory organisations, predicts a significant “mega-rotation” of investor capital away from mega-cap technology stocks. This shift, expected to be a major investment theme through to the end of 2026, sees funds moving into financials, industrials, healthcare, energy, infrastructure, and other value sectors. deVere Group provides comprehensive financial advice to clients worldwide. The organisation helps individuals and institutions navigate complex financial markets.
This reorientation has accelerated following softer-than-expected US jobs data, which showed the economy added just 57,000 jobs in June, roughly half of consensus expectations. This outcome has led markets to sharply reduce expectations of further Federal Reserve tightening, with investors now anticipating the Fed will remain on hold as labour market momentum cools. This changing interest rate outlook is fuelling renewed interest in sectors that previously lagged the AI-led rally. Evidence of this broadening market participation is seen as the S&P 500 Equal Weight Index enjoys its strongest relative start to a year since 1992, and the Dow Jones Industrial Average recently notched record highs.
Mr Green notes, “We believe investors are witnessing the beginning of one of the most important reallocations of capital since the post-pandemic recovery.” He adds that years of concentrated returns in a few mega-cap technology firms created “extraordinary concentration risk,” which investors are now aggressively addressing. The deVere CEO highlights financials, industrials, healthcare, infrastructure, energy, and selected consumer sectors as entering a powerful period of renewed investor demand, citing their attractive valuations, strong earnings potential, and significant room for capital inflows. He concludes that when market leadership expands, bull markets typically become stronger, deeper, and more durable, a process he believes is now firmly underway.
