Investors should rotate into value and cyclical stocks, expert advises

Market Overview - The current bull market has lasted for 1,123 days, slightly above the average duration of 1,111 days, with the longest bull market reaching 4,494 days [1] - There is significant anxiety among investors regarding the market's performance, particularly in the tech sector, which has shown signs of struggle [2] Investment Strategy - The company has been advising investors to rotate into value cyclicals that are expected to benefit from improved manufacturing data and a recovering housing market [3] - It is suggested that this year is not favorable for owning the S&P index; instead, investors should focus on equal weight, midcap, small cap, and value indices, as well as international markets [5] Economic Indicators - Recent economic indicators show a positive trend, with lower interest rates, rising money growth, and a 20% increase in the housing purchase index over the past year [7] - In January, 70% of US regional and national services and manufacturing PMIs were in expansion, the highest level in four years, indicating potential for broader earnings growth [8] Political and Monetary Factors - The upcoming midterm elections are viewed as potentially bullish, with expectations of a strong fourth quarter performance, particularly in the cyclical value space [11] - The new Fed chair's policies are under scrutiny, with concerns about how they may impact earnings and the ongoing cyclical upturn [13][14]