The Investopedia Express with Caleb Silver Slip-Sliding Through Sector Rotation
Nov 17, 2025
Keith Lerner, Chief Investment Officer and Chief Market Strategist at Truist Wealth, discusses the current volatility in the markets and whether it's just typical sector rotation or the sign of larger issues. He sheds light on historical correction patterns and the necessity of pullbacks in bull markets. Lerner also explores a rally in bonds, offers insights on ETF trends, and warns about risks in concentrated tech investments. As eyes turn to Nvidia’s quarterly results, he emphasizes that understanding earnings and demand signals is crucial for investors.
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Volatility Is A Normal Price Of Returns
- Market volatility is normal and periodic corrections (around 10%) are common even in healthy bull markets.
- Since WWII average declines after post-correction recoveries have been under 10%, offering historical perspective.
Money Has Poured Into Tech And Bonds
- 2025 saw record inflows into equity ETFs, tech, and investment-grade bonds, concentrating investor exposure.
- Money flowed out of real estate and small caps, highlighting concentration risks.
Bonds Are Rallying As Rates Head Lower
- Bonds rallied strongly in 2025 as investors priced in Fed rate cuts and lower inflation.
- The Bloomberg U.S. Aggregate Index rose roughly 6.7%, benefitting fixed-income allocations.