WS #16600
As tech weakness accelerates, institutional capital is rotating into defensive sectors. Healthcare names like AbbVie and Eli Lilly are posting strong earnings and gains, while staples like Walmart and Costco are outperforming. This rotation reflects a risk-off environment where investors are prioritizing dividend yield and earnings visibility over growth multiples, with Bank of America strategists highlighting beaten-down tech bonds as a value play.
Defensive Rotation and Healthcare Strength
As tech weakness accelerates, institutional capital is rotating into defensive sectors. Healthcare names like AbbVie and Eli Lilly are posting strong earnings and gains, while staples like Walmart and Costco are outperforming. This rotation reflects a risk-off environment where investors are prioritizing dividend yield and earnings visibility over growth multiples, with Bank of America strategists highlighting beaten-down tech bonds as a value play.