Jim Paulsen suggests a technical breakout may end prolonged underperformance of non-tech sectors in U.S. equities.
Economist Jim Paulsen indicated that a long period of underperformance by most sectors outside technology could be nearing an end. He cited a potential technical breakout as a signal for a shift in U.S. equity market leadership.
Paulsen’s note highlighted that tech stocks have dominated market performance for an extended period, while other sectors lagged. The observation follows recent market trends where non-tech sectors showed signs of relative strength.
No immediate market reaction was detailed in the note, but the analysis suggests a broader rotation in leadership may be underway.