By 
Global Investors Shift Beyond Big Tech as 2026 Market Leadership Broadens
A major shift in global investment strategy is gathering pace as investors increasingly rotate capital away from mega-cap technology stocks into financials, industrials, healthcare, energy, infrastructure and other value-oriented sectors, according to Nigel Green, Chief Executive Officer of  deVere Group, one of the world’s largest independent financial advisory organisations.
RELATED: From Magnificent Seven to Magnificent Three: Why AI is redrawing Big Tech’s power map
Green believes this “mega-rotation” will emerge as one of the defining investment themes for the remainder of 2026 as global markets broaden beyond the technology giants that have dominated returns in recent years.
The forecast comes amid softer-than-expected U.S. employment data, changing expectations around Federal Reserve interest rate policy and growing investor confidence that market leadership is expanding beyond a handful of artificial intelligence (AI)-driven technology stocks.
Investors Reduce Concentration Risk
For much of the post-pandemic period, global equity market gains have been heavily concentrated in a small group of mega-cap technology companies, particularly those benefiting from the rapid growth of artificial intelligence.
While the strategy delivered exceptional returns, it also left many investment portfolios highly concentrated.
According to Green, investors are now reassessing that exposure.
“We believe investors are witnessing the beginning of one of the most important reallocations of capital since the post-pandemic recovery,” he said.
“For years, returns became increasingly concentrated in a handful of mega-cap technology companies. That trade generated exceptional wealth, but it also created extraordinary concentration risk.”
He noted that investors increasingly recognise opportunities extending well beyond the technology sector.
Weak U.S. Jobs Data Accelerates Market Rotation
The investment shift gained momentum following the latest U.S. labour market report, which showed the economy added just 57,000 jobs in June, significantly below market expectations, while employment figures for previous months were revised downward.
The weaker jobs report has prompted investors to reduce expectations of further U.S. Federal Reserve interest rate tightening.
Instead, markets are increasingly pricing in a more patient monetary policy, creating a more supportive environment for sectors that had previously lagged behind the AI-driven technology rally.
According to Green, stabilising interest rate expectations are encouraging investors to diversify their portfolios.
“The labour market data has reinforced a growing belief that the next phase of this market cycle will look very different from the previous one,” he explained.
Broader Market Participation Signals Healthier Bull Market
Recent market performance reflects the changing investment landscape.
The S&P 500 Equal Weight Index is recording its strongest relative start to a year since 1992, while equal-weight U.S. equities have recently outperformed traditional market-cap-weighted indices.
Meanwhile, the Dow Jones Industrial Average reached another record high above 52,900, supported by renewed investor interest in economically sensitive sectors as capital rotated away from parts of the technology and semiconductor industries.
Market analysts increasingly describe the trend as evidence that the current bull market is becoming broader, healthier and less dependent on a small number of technology leaders.
“When market leadership expands, bull markets become stronger, deeper and more durable,” Green said.
“We believe that process has already begun.”
Value Sectors Positioned to Benefit
While remaining optimistic about artificial intelligence as a long-term investment theme, Green believes investors are now asking where the next wave of market returns will originate.
He identifies several sectors as particularly well-positioned to attract fresh investment, including:
- Financial services
- Industrial manufacturing
- Healthcare
- Infrastructure
- Energy
- Selected consumer sectors
According to him, these industries offer attractive valuations, solid earnings prospects and significant potential for additional capital inflows.
“The opportunity set available to investors today is arguably broader than at any point over the last several years,” he said.
Artificial Intelligence Remains a Long-Term Growth Story
Despite expectations of reduced concentration in technology stocks, deVere maintains that artificial intelligence will remain one of the world’s most transformative investment themes.
Green stressed that AI will continue reshaping industries, business models and investment portfolios over the coming years.
However, he argues that investors should avoid relying exclusively on the companies that dominated the previous market cycle.
“We remain very bullish on artificial intelligence over the long term. But investors are asking an increasingly important question: where does the next wave of returns come from?,” he noted.
Why Diversification Matters in 2026
According to deVere, the emerging market rotation is being driven by a combination of economic, monetary policy and valuation factors.
As interest rate expectations stabilise and economic growth moderates rather than contracts sharply, broader participation across multiple sectors could create more resilient market performance.
Green advises investors to remain alert to changing market leadership rather than focusing solely on yesterday’s winners.
“History teaches us that investors who identify major market transitions early are typically those who benefit the most,” he concluded.
“The mega-rotation has powerful economic, monetary and valuation drivers behind it. We believe this trend still has considerable room to run, and the opportunities emerging across global markets are exceptionally compelling.”
