What does the term "Great Rotation" refer to?

The Current State of the Stock Market: A Shift in Leadership

As of February 10, 2026, the stock market is undergoing a significant transformation often referred to as the "Great Rotation." This phenomenon marks a transition in market dominance, moving away from high-flying Artificial Intelligence companies and toward more traditional sectors that represent the broader economy. John Blank, our Chief Equity Strategist and Economist, offers his insights to help clarify these changes.

Key Questions About the Market Shift

1. What is driving this transition?
2. Have technology giants, particularly the so-called Magnificent 7, reached their peak?
3. How does the 10-year Treasury yield factor into this scenario?
4. Is the divergence between the S&P 500 Value and Growth indices versus their 50-day moving averages a meaningful technical signal? What does it suggest for the market’s direction?
5. What arguments support a bullish outlook?
6. What are the reasons for a bearish perspective?
7. How long might this trend continue?
8. Recent reports indicate U.S. stocks are lagging behind global markets. Should investors be worried?
9. What should investors ultimately take away from these developments?
10. Which value stocks are currently on your radar? John highlights Barclays (BCS), FedEx (FDX), and Tokio Marine (TKOMY) as notable picks.

John Blank provides his expert perspective on the ongoing Great Rotation, joined by Terry Ruffolo for this discussion.

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Additional Resources

• For the latest stock recommendations, download the 7 Best Stocks for the Next 30 Days – available for free today.
• Barclays PLC (BCS): Free Stock Analysis Report
• FedEx Corporation (FDX): Free Stock Analysis Report
• Tokio Marine Holdings Inc. (TKOMY): Free Stock Analysis Report