“Mega-Rotation” Out of Big Tech Set to Define Markets Through 2026, Says deVere CEO

A sweeping “mega-rotation” away from Big Tech and into value-oriented sectors will be one of the defining investment themes for the remainder of 2026, according to Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory organisations.

Green’s comments come as investors accelerate a broad shift out of concentrated mega-cap technology positions and into financials, industrials, healthcare, energy, infrastructure and value stocks.

The move follows softer-than-expected US jobs data and mounting evidence that market leadership is widening beyond a handful of dominant names.

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The S&P 500 Equal Weight Index is having its strongest relative start to a year since 1992, with equal-weight US equities outperforming their market-cap weighted counterparts in recent months.

Meanwhile, the Dow Jones Industrial Average notched a fresh record close last week, topping 52,900 as capital flowed into economically sensitive sectors.

“We believe investors are witnessing the beginning of one of the most important reallocations of capital since the post-pandemic recovery,” Green said, noting that years of concentrated mega-cap tech returns created “extraordinary concentration risk.”

Jobs Data Fuels the Shift

The rotation gathered pace after June’s US employment report showed just 57,000 jobs added, roughly half of expectations, with prior months revised lower. Markets have since scaled back bets on further Fed tightening, boosting appetite for sectors that lagged the AI-driven rally.

Where the Next Wave of Returns Comes From

Green remains bullish on AI long-term but says investors are now asking where the next wave of returns will come from. “Financials, industrials, healthcare, infrastructure, energy and selected consumer sectors are entering a powerful period of renewed investor demand,” he said.

He concluded that the mega-rotation has “powerful economic, monetary and valuation drivers” behind it, with further broadening likely as the cycle evolves.