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Feb 16, 2026
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LONG
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T. Rowe Price is "barbelling" exposure. They note US Small Caps need rate cuts to perform, and they see a breakdown in correlation where Asia/Non-US markets are outperforming due to better valuations. With the US market concentrated and facing "AI Scare" volatility, capital is seeking diversification. Non-US Value and Small Caps (if the Fed cuts rates as implied by the "risk-off" bond bid) offer the best risk/reward for rotation. LONG Small Caps and International Value as a diversification play against US Tech concentration. Fed keeps rates higher for longer; global growth slows. |
Bloomberg Markets
AI 'Scare Trade' Takes Hold; Talabat FY Earni...
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