The David Lin Report Stocks Are Rotating Hard; This Is Where Smart Money Is Going | Sam Burns
Nov 24, 2025
Sam Burns, Chief Strategist at Mill Street Research, dives into the shifting labor market and economic growth dynamics. He discusses the shift from speculative investments to earnings-driven companies. Burns highlights concerns over rising unemployment and potential layoffs against a backdrop of mixed labor signals. He emphasizes the arms race in AI spending and warns of the risks involved. Lastly, he provides insights on positioning within tech, encouraging investments in resilient equities while navigating inflation complexities.
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Risk Appetite Drove The Rally
- Since April, markets were driven by risk appetite more than fundamentals, creating a speculative surge that peaked in mid-October.
- The recent pullback is a rotation from speculative, no-earnings assets back into companies with real earnings.
The Economy Is K-Shaped
- The economy is K-shaped: high-income households and large firms do well while middle/lower-income households and small businesses struggle.
- That divergence explains why broader market indices can look healthy despite real weakness for many.
Rotate Within Equities And Toward Ex-US
- Money is mostly rotating within equities and into non-US markets rather than fully exiting stocks.
- Consider repositioning between US and ex-US assets and within equity sectors accordingly.