Thoughtful Money with Adam Taggart Is The Stock Market Undergoing A 'Great Rotation'? | Michael Lebowitz
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Jan 17, 2026 Michael Lebowitz, a savvy portfolio manager and financial commentator, dives into the intriguing shift in markets as capital moves from big tech to previously overlooked sectors like value and small caps. He discusses the potential for a 'Great Rotation' and shares insights on future GDP growth, bonds, and inflation. Their conversation also touches on low volatility, technical market signals, and the debate over the silver market's current frenzy. A thought-provoking exploration of what might shape your portfolio’s future!
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Early-Stage Rotation Away From Mega Caps
- Michael Lebowitz observes a clear rotation from MAG7-led gains into small/mid-cap, value, and dividend stocks.
- He warns it may be a short-lived rotation or the start of a durable sector leadership shift for 2026.
Overbought Signals Could Trigger Consolidation
- Lebowitz's system flags many formerly out-of-favor sectors as overbought on absolute scores and small caps as overbought relative to the S&P.
- He expects a corrective consolidation or a MAG7 resurgence to resolve extreme readings.
Wait For Technical Confirmation Before Shifting
- Michael says consider shifting modestly toward value and dividend stocks if rotation persists and technicals confirm it.
- He recommends waiting to see how overbought readings resolve before making large portfolio shifts.