Jurrien Timmer, Director of Global Macro, believes we are seeing a sizable rotation from U.S. large-cap growth stocks to virtually everything else. At one point FAANG stocks made up nearly a quarter of the market, and there were worries that a rotation away from these large-growth companies would take the market along with it. Instead, market leadership is broadening, and as other sectors rise, these stocks are coming back down to earth. Jurrien thinks we should feel optimistic about the current state of the virus. Despite some new waves in the U.S. and in places such as Italy and the U.K., vaccination rates are increasing, and cases are down. He believes we are well into an economic recovery now, and concerns have shifted away from the virus and toward how we will come out of the pandemic.
Recorded on March 22, 2021.