Investors are dumping stock-market winners and buying almost everything else. Why that’s a good sign.

Group 1 - A rotation trade on Wall Street has gained momentum, with investors moving away from high-valued AI stocks towards more undervalued options [1][2] - The Federal Reserve's recent interest-rate cut has encouraged investors to seek bargains, leading to a more optimistic economic outlook, characterized as a potential "Goldilocks" scenario [2][3] - Economic resilience is now widely accepted, with expectations for a soft landing in 2026, supported by fiscal stimulus and AI-driven productivity gains [4] Group 2 - Growth stocks, particularly in the information-technology and communication-services sectors, have significantly contributed to the recent bull run, raising concerns about market concentration [5] - The recent decline in leading AI stocks is viewed as a profit-taking opportunity rather than a sign of long-term weakness, with expectations that investors will continue to buy on pullbacks [6]