Liz Claman: Is this a lesson that buying the dip still works?

Market Volatility and Technology Sector - Recent market volatility has raised questions about whether it is a temporary phenomenon or indicative of deeper issues, with significant daily fluctuations observed in the Dow [2][11] - The technology sector, particularly software, faced intense scrutiny, leading to a sell-off referred to as "software mageddon," with the IGV ETF reaching its lowest relative strength index since its inception [4][5] Investment Trends and Sector Rotation - There has been a notable rotation from technology stocks to industrials and materials, with companies like Caterpillar performing strongly, doubling in value over the past year [6][7] - The market is beginning to broaden beyond the previously dominant technology and communication services sectors, indicating a shift in investment focus [7] Earnings Performance and Market Outlook - The earnings reporting season has shown strong results, with 80% of S&P 500 companies beating earnings expectations and 70% exceeding revenue forecasts, suggesting a solid fundamental backdrop for the market [12][14] - Companies are guiding higher for the calendar year 2026, indicating confidence in future earnings growth, which could support market prices without the need for multiple expansions [12][13]