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Feb 17
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$202.52
$203.57
+0.5%
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LONG
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Ben Carlson
Director of Institutional Asset Management, Ritholtz Wealth Management
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"The Mag 7 is down over 6% this year. The 493 is up almost 4%... the equal weight S&P, that's RSP, is up almost 6%." The market is broadening. Investors are no longer waiting for Tech to recover; they are actively diversifying into the "average" stock. If this spread continues, it will force passive flows and advisor allocations away from market-cap weighted concentration into broader exposure. LONG Equal Weight S&P 500 to capture the rotation into the broader market. A resurgence of Mag 7 dominance reversing the rotation. |
The Compound News
“Unrealized” Capital Gains Tax is Economic Su...
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Feb 17
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|
$202.52
$203.57
+0.5%
|
LONG
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Brian Levitt
Global Market Strategist, Invesco
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Levitt notes a rotation from "virtual themes" (AI concentration) to the "physical world." The S&P 500 Equal Weight (RSP) is near all-time highs, while tech has seen 3 weeks of losses. The market is broadening out. As investors take profits in Mag-7/AI, capital flows into undervalued cyclical sectors (Financials, Industrials, Energy) and mid-caps that benefit from economic resilience and re-industrialization. Long RSP and Cyclical Sectors. A recession would hit cyclicals harder than cash-rich tech monopolies. |
Bloomberg Markets
Open Interest 2/17/2026
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Feb 13
|
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$202.87
$203.57
+0.3%
|
LONG
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Scott Bessent
Treasury Secretary
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Bessent states, "If you look at the broad indices, whether it's the equal weighted S&P... or the small cap indices, they're doing fantastic... Regional banks are doing well." He explicitly uses the performance of Regional Banks and Equal Weight indices (Main Street proxies) as his primary indicator that the "real economy" is taking off, contrasting them with the volatility of Big Tech. If the Treasury Secretary views these as the leaders of the "2026 banquet," policy will likely support their continued rotation. LONG US Domestic Cyclicals and Regional Banks. A resurgence of inflation or a bond market revolt (yields spiking) would disproportionately hurt regional banks and small caps. |
CNBC
Squawk Pod: AT&T CEO John Stankey & Treasury ...
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Feb 13
|
|
$202.87
$203.57
+0.3%
|
LONG
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Scott Bessent
Treasury Secretary
|
"The private sector numbers were more than 170,000, and government jobs were reduced... We're at the lowest ratio of government jobs to total jobs since 1966... If you look at the broad indices, whether it's the equal weighted S&P... or the small cap indices, they're doing fantastic... Regional banks are doing well." Bessent argues that the "reprivatization" of the economy and deregulation directly benefit domestic-focused companies over global mega-caps. He explicitly points to Equal Weight S&P (RSP) and Regional Banks (KRE) as the true barometers of this "Main Street" recovery, suggesting a rotation out of market-cap weighted concentration into broader cyclical breadth. Long domestic cyclicals and equal-weight indices to capture the "broadening out" trade. Re-acceleration of inflation could force the Fed to keep rates high, hurting small caps and regional bank balance sheets. |
CNBC
Watch CNBC's full interview with Treasury Sec...
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Feb 11
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$203.46
$203.57
+0.1%
|
LONG
|
Alexandra Semenova
Bloomberg Reporter
|
While Tech/Software sold off, the S&P 500 Equal Weight Index (RSP) hit a new all-time high. Deutsche Bank reported $62 billion in inflows to non-tech sectors in the first five weeks of 2026 (more than all of 2025). Investors are not leaving the market; they are rotating. The "Golden Age" narrative (Trump administration) combined with sticky inflation/rates favors Value, Industrials, and Cyclicals over long-duration Tech growth. The Equal Weight index captures this rotation perfectly, avoiding the drag from the Mag-7 correction. LONG. This confirms the breadth of the rally is improving, decoupling from the Mega-Cap Tech dominance. A hard landing recession would drag down cyclicals regardless of rotation. |
Bloomberg Markets
Strong Jobs Report Curbs Fed-Cut Bets | Balan...
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Feb 11
|
|
$203.46
$203.57
+0.1%
|
LONG
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Michael Gapen
Chief US Economist at Morgan Stanley
|
"Her thesis is that you will see some broadening out in 2026. As you mentioned, the rebounding small caps... We think if you get a stabilization in the labor market inflation does come down. It can support purchasing power of other parts of the economy." The speaker explicitly validates the "broadening out" thesis. As inflation cools and purchasing power restores beyond the top percentile, capital will rotate from the concentration in mega-caps to the average stock (Equal Weight) and smaller companies which are more sensitive to domestic economic health. LONG Small Caps and Equal Weight indices to capture the rotation. Inflation remains sticky, preventing the purchasing power restoration required for the rotation. |
Bloomberg Markets
This Jobs Report Is 'Largely the Real Deal,' ...
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Feb 09
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$202.38
$203.57
+0.6%
|
LONG
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Bryn Talkington
Managing Partner, Requisite Capital Management
|
"Let it run." The speaker advises holding or buying this ETF as the market broadens out. Unlike the market-cap weighted S&P 500, RSP is equal weight. Crucially, its largest sector weighting is Industrials (>16%). Industrials are currently benefiting from the economic expansion and the physical infrastructure side of the AI trade. SanDisk is currently the top holding (50bps). If the "broadening out" trade fails and capital rushes back exclusively to mega-cap tech. |
CNBC
Halftime Investment Committee debates how far...
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