Via CNBC, thoughts from Deutsche Bank on further losses still to come for large cap tech stocks:
- rotation away from big tech into small caps that happened will be more than a short-term blip
- market is still pricing in too much optimism about the growth areas of the market that have led most of the bull rally
- overall equity positioning remains elevated
- sharp rotations in positioning and flows away from (megacap growth) and tech and into other sectors and small caps, these have plenty of legs to run medium term.
- "MCG & Tech positioning is still aligned with a continuation of extremely strong earnings growth and upgrades while we see a slowing as growth catches back down to the trend rate in place for the last 2 decades"
