Why investors may have to contend with market volatility for a while

• A distinct repricing of expectations is occurring within the tech sector, with hyper-scalers and software companies experiencing downturns, while their suppliers are up.
• There is a rotation of capital from high-beta AI/tech stocks into more cyclical (materials, oil, industrials) and defensive (real estate, healthcare, utilities) sectors.
• Market volatility is expected to be the overarching theme for 2026, driven by geopolitical events, upcoming midterms, and job market uncertainty, making long-term value investing crucial.
• The 'buy the dip' mentality, reinforced by quick market rebounds since the pandemic, could lead to more painful corrections when prolonged downturns occur.

The discussion covers a significant market rotation from AI/tech leaders to 'real economy' and defensive sectors, despite the Dow reaching 50,000. Experts warn of increased market volatility in 2026 due to geopolitical factors and job market uncertainty, cautioning against the prevalent 'buy the dip' mentality.