Over the past several years, investors have gotten wealthy focused primarily on tech and growth stocks. But these are no longer the hot themes in 2026.
At the beginning of the year, the markets rotated out of these themes and into areas such as value stocks, dividends, international, and small-cap stocks. Investors whose portfolios were heavily allocated to megacap tech started to see their returns lag. Investors who maintained diversification were finally being rewarded.
Even though the S&P 500 (^GSPC +0.08%) is down about 6% from its all-time highs, several areas of the market are still performing well. Plus, they’ve been seeing significant inflows already this year.
Some people will look at year-to-date returns and think they’ve missed an opportunity. However, there are compelling reasons why some of these categories are still in the early stages of a long-term rebound.
Let’s take…
