Possible scenario
Rotation Broadens
20% Chance
Investors use the extreme wealth divergence as a signal that the technology trade has become crowded. If economic data remain firm and rates do not spike, capital can rotate into financials, industrials and cyclicals without a deep technology selloff.
Initial impacts
- 10-year Treasury yield Up
- Oil prices Up
- Copper Up
- Market volatility Down
Secondary impacts
- Finance +0.6%
- Industrials +0.6%
- Energy
Portfolio impact
S&P 500+0.2%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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