Rotation Out of Big Tech Boosts Market Breadth As Inflation Fears Ease
• Rotation out of big tech stocks and into other areas of the market is evident in recent trading, improving market breadth • Inflation concerns are likely temporary and should not undermine market gains, with spending patterns expected to rebalance • Rise in core services prices in PPI likely one-off price hikes; I would ignore as it should not imperil the expansion • Inevitable rebalancing of spending from services to goods should ease core services inflation going forward • Declining inflation along with profit growth supports continuation of the bull market in 2023