{"id":3237,"date":"2026-04-06T19:49:12","date_gmt":"2026-04-06T19:49:12","guid":{"rendered":"https:\/\/stock999.top\/?p=3237"},"modified":"2026-04-06T19:49:12","modified_gmt":"2026-04-06T19:49:12","slug":"the-sectors-wall-street-is-quietly-rotating-into-now","status":"publish","type":"post","link":"https:\/\/stock999.top\/?p=3237","title":{"rendered":"The sectors Wall Street is quietly rotating into now"},"content":{"rendered":"

<\/p>\n

Transcript:
CAROLINE WOODS
Joining me now, John Petrides portfolio manager at Tocqueville Asset Management. John, great to have you on. Thanks so much for joining us.<\/p>\n

JOHN PETRIDES
Thanks for having me on, Caroline. Great to see you.<\/p>\n

CAROLINE WOODS
So, John, great to see you as well. I should note that stocks are kicking off the first full week of April with some green on the screen. Gains are pretty modest at this point, but how are you approaching the market right now? What are some of the catalysts that could move stocks this week?<\/p>\n

JOHN PETRIDES
Yeah, well I forget about the week. I think it’s moment to moment. Really I think everyone’s attention is squarely on where what’s happening with the war on Iran. The, the state of the Strait of Hormuz and the impact to oil prices or energy prices, because really, there’s massive inflationary forces that the longer this goes on, the longer that the strait is, closed or that, only a few vessels are slipping on through.<\/p>\n

JOHN PETRIDES
The longer that commodity prices stay higher, the more pressure there is on inflation, which keeps interest rates higher globally and more stress on the consumer. So, you know, that’s where all the attention is right now.<\/p>\n

CAROLINE WOODS
So with oil, U.S. crude at $112 a barrel and with the S&P 500 only less than 6% off, the highs, do you think investors are underestimating how prolonged the Iran situation could be? I know there’s hope for a ceasefire. We’ll know more, you know, potentially later this afternoon. There’s a Tuesday deadline. So there’s a lot of uncertainty still.<\/p>\n

CAROLINE WOODS
Do you think that investors are underestimating the risk?<\/p>\n

JOHN PETRIDES
It’s a great question. And you know, we’re almost one year to the day of where there was capitulation on Liberation Day. And then the idea of taco, right. Trump always chickens out. And I think that is very fresh in investors minds. I mean, you had a lot of, you know, rewind to March of 2025 on the the anticipation of what tariffs may be, the anticipation of what may happen on the global economy.<\/p>\n

JOHN PETRIDES
And you had a very down stock market. And then of course, we all know on April 2nd the administration put forth significantly more draconian tariffs. Potentially across various are the country’s trading partners around the world to one week later capitulating on most of those and instead of the initial north of 20% average tariff brace, it’s settled out to around 12 or 13%.<\/p>\n

JOHN PETRIDES
And now we know all those, estimates were now deemed, to a degree illegal by the Supreme Court of the United States, and of which tariffs or, or leveled out to now about 15%. But the point is that eventually, one week after making an announcement, you know, the administration capitulated, and use those as negotiations. So I think or to the reason of why the stock market is not acting more concerned or worried, or you’re not seeing more of a dramatic sell off across the board is, mainly because they think ultimately there’ll be some settlement where the strike will be open.<\/p>\n

JOHN PETRIDES
Now, whether that proves to be the case. You know, it’s really hard to tell. But but but I think to answer your question, that’s why my my assumption is that’s why investors are are more sanguine than what you would think, given the situation that we’re in.<\/p>\n

CAROLINE WOODS
But even so, I mean, oil has now is now up almost 100% so far in 2026. At what point does that become damaging? Even if the strait eventually reopens and we do see oil prices start to head lower?<\/p>\n

JOHN PETRIDES
Yeah. And it’s not just oil prices, right? Look at liquid natural gas, which a lot of the East Asian or Asian countries really rely on. They’re feeling that pressure. You’re going to see, rising prices in fertilizer in certain commodities like helium, that are important to the supply chain. And obviously major impacts to inflationary costs. So, you know, the longer that this drags out, the more impactful it will be on the economy as of right now, like the opinion is that we, the US will not be in recession.<\/p>\n

JOHN PETRIDES
But if we’re still talking about, you know, higher oil up north of $120, north of $180, it come June, July. And we’re seeing on a national average, you know, $5 at the pump on gasoline, 560 at the pump for an extended period of time. Then then the whole math changes on, on where a recession might, might come into picture here.<\/p>\n

JOHN PETRIDES
So we also. Yeah. Yeah. I think what investors have come to learn is it’s not just one data point. And you have extrapolate them to the future. It’s the longevity that we’re at these higher level at these higher oil prices. And I think that’s what investors have come to appreciate over time.<\/p>\n

CAROLINE WOODS
Yeah, John, we also have earnings season approaching I know Delta is reporting this week Constellation Brands I saw Levi’s on the schedule. So a slow start here. But does any of that matter for the market. Or is this all about an end to the war.<\/p>\n

JOHN PETRIDES
No all the matters. It’s it’s tremendous. Right. Because when you look at valuation stocks, the the the the typical way is price to earnings. Right. So earnings is the denominator in that valuation multiple. And right now expectations for earnings are actually quite healthy. Of course that’s driven by The Magnificent Seven that’s driven by the spending in AI.<\/p>\n

JOHN PETRIDES
It’s we’ve only really been at this pressure on the consumer call the past three weeks. So you’re probably not going to see many companies, cry uncle, in terms of the the pressure on their earnings. Right. They’re going to wait some more time. Given that the quarter just finished, you’re going to see. And so I think earnings expectations are quite robust.<\/p>\n

JOHN PETRIDES
This is the earnings. The knees start to buckle on earnings. Then you’re going to see you know stocks potentially sell significantly for the.<\/p>\n

CAROLINE WOODS
So robust earnings expectations. No view that a recession is near according to you. Are you bullish then in this environment given the fact that there are hoping that this war sort of end soon, can you make the case that once that’s out of the way, this is a market that can head higher?<\/p>\n

JOHN PETRIDES
Yeah, I appreciate the question. Let me clarify first. It’s all yet right. Again, the longer this goes on, the longer that commodity prices are higher. You know that the more that the more impactful it will be on earnings, the more impacts will be negatively. Obviously, on on the economy that then you’re going to have, you know, all cuts will eventually follow across the board.<\/p>\n

JOHN PETRIDES
You may even see more of a situation where it’s commodity costs or input costs or supply chain costs are elevated because of commerce, like geopolitical reasons. Maybe. You see, an increase in the spending on AI, to, to offset labor costs, right? Maybe companies protect their margins and you see an increase in the speed of, adoption, of AI across companies to offset margin pressure.<\/p>\n

JOHN PETRIDES
And that accelerated what I think was a big fear, during the first quarter of this year was some of the advancements that we were seeing out of anthropic and OpenAI, in terms of the impact that it may have on, certain companies, in particular in the labor markets, maybe that I get it gets exacerbated. So, or accelerated, I should say.<\/p>\n

JOHN PETRIDES
So I think right now the situation is extremely fluid and the level of disruption is extremely high. And I think over the next, you know, four weeks, you’re going to see, all this sort of play out in almost in unison.<\/p>\n

CAROLINE WOODS
Okay. So how do you actually navigate this kind of environment? Yeah.<\/p>\n

JOHN PETRIDES
Well, you know, one thing that we do for our clients in our portfolios, as is we pick individual stocks and bonds and, and we look for value as we’ve been advocating for a very long time to cast a wider net, you know, almost for a decade, basically up until the beginning of 2025, it has been really a one trick pony that has driven all asset class or has outperformed all asset class.<\/p>\n

JOHN PETRIDES
So across the world, right. It has been large cap US tech growth. And whether that was the Fang stocks. You remember those that pass the baton to the Magnificent Seven. It has really been a handful of stocks in one region of the world that has dominated all other asset classes up until about the start of last year, and we have been very vocal and concerned about concentration, and that the S&P 500 is a market that’s supposed to capture a basket of 500 stocks, 2 to 2, to give an index of what an economy is has really been skewed because it’s been sort of 7 to 10 companies that have carried the whole, the<\/p>\n

JOHN PETRIDES
whole fifth year. And we’ve been advocating for investors to diversify. Investors had not been compensated for owning small cap stocks. They have not been compensated by owning value stocks. They have not been compensated by owning international stocks up until really the past 15 months or so. And we still think there’s value to be had outside in active management, in finding pockets where there is, undervalued securities, mispriced securities, rather than simply buying the index rather than simply buying a passive S&P 500, which is really skewed.<\/p>\n

JOHN PETRIDES
It’s where the most concentrated or, stock market judged by the S&P 500 that we’ve been in history. So, we think there’s tremendous value to be had out there. But you have to show up in the pencil and find it.<\/p>\n

CAROLINE WOODS
So dig in a bit more in terms of where you’re finding value. You can’t talk specific stocks, but sector plays that you like that sort of sort of thing.<\/p>\n

JOHN PETRIDES
Sure. Well we’re we’re unconstrained investors, right. So we can go wherever we want. So we could start in the United States. It’s been perplexing to see the sell offs in medtech. Looking at health care. Health care has been one of the value, sectors that has underperformed. You would think, in an environment where investors are nervous because there’s so many issues, whether it’s the sell off in software stocks, whether it’s years of credit contagion and private credit and what’s going on in private markets, whether it’s the global geopolitical risk and rising commodity costs, you would think investors would fall back on defensive type sectors.<\/p>\n

JOHN PETRIDES
Like health care, knowing that, you know, we have this growing baby boomer population’s aging population. The utilization of the health care system is only going to increase. And we’ve been really surprised by, the sell offs in medtech stocks. So the underperformance for, so for a better term. So there have been individual companies US based where we find tremendous value on medtech.<\/p>\n

JOHN PETRIDES
One way that investors can play it is to own the ETFs. The AI age AI is the the largest medtech ETFs. I think by assets under management the world. So, you know that that that’s a well, you said I can’t speak individual stocks for compliant reasons, but I think that’s an area where we’re finding value, you know, continue the theme about diversification.<\/p>\n

JOHN PETRIDES
You know, last year US stocks good finds. You look at the S&P 500 was up something like 16% for 2025. But international was up like 30% in emerging markets nearly 50%. And in those two categories, international emerging markets specifically have been perennial underperformance. The S&P 500. We have been adding to that space. And we still think international is attractive relative to the Nasdaq on a valuation perspective.<\/p>\n

JOHN PETRIDES
And we think emerging markets are attractive, compared to domestic as well. Again, valuation driven. We like the north and south, active emerging market ETFs. The tickers GE and E, we own that for certain clients. I own it personally. And there are not many actively managed equity, emerging market ETFs out there. Most of them are in the form of mutual funds.<\/p>\n

JOHN PETRIDES
So here we think you get diversification through the ETFs. You get liquidity through the ETF and you get an active manager in an asset class. I always think there’s a lot of value okay.<\/p>\n

CAROLINE WOODS
Speaking of value though and bringing it back to tech the mag seven could be looked at is on sale. They’re all lower so far in 2026. I was just taking a look at how far they are from the highs. Apple only 10% from the highs. But you take a look and meta is off almost 30% from the highs.<\/p>\n

CAROLINE WOODS
Does any of that look attractive to you just in terms of the mag seven? As you think about value.<\/p>\n

JOHN PETRIDES
Yeah, it’s it’s a great question because despite my, you know, concerns or fears about, you know, concentration of the S&P 500 driven by the Magnificent Seven. You know, these are fantastic companies, right? This is not 1999. These companies have tremendous balance sheets earn tremendous free cash flow are dominant positions have tremendous moats I mean they have earned the right to be on top of the mountain.<\/p>\n

JOHN PETRIDES
When you look at market cap weighting within the S&P 500, there’s no question. But if for some reason, somewhere watching this does not have any exposure to the magnificent, Magnificent seven group and or does not, is not overly, concentrated across their own, financial assets, then I do think now is a healthy time to nibbling, to those companies.<\/p>\n

JOHN PETRIDES
I do think that, investors, you know, going out in this broadening theme, whether it’s international or value stocks or different sectors or energy, which we’ve talked about, which has rallied so much. Most of the market has been underweight energy companies. You have to sell some something to buy something else. And I think what you’re seeing is, not only concern about, you know, the future spending on AI, how sustainable it is, but also, you know, if you want to diversify, you have to sell some work.<\/p>\n

JOHN PETRIDES
And obviously, the magnificent Seven have been tremendous performers over the past. Any metric you want to look at, and I think they’ve been sold here. TV users, liquidity to buy in, to diversify. So, I think as you or you currently do not own any of the mag seven, I think it makes sense now to, to be looking at that group, or at least maybe nibbling into your portfolio.<\/p>\n

CAROLINE WOODS
Okay, so consider medtech invest internationally, specifically emerging nibble on the mag seven just to some things up, the best advice for investors who are listening in right now? Thinking at the bottom is the bottom in what should I do right now? What’s your best piece of advice?<\/p>\n

JOHN PETRIDES
Dusty’s advice is is really take a step back and determine what your objectives are. If you’re a trader, right? This is a really complicated environment. It is really, really complicated because the narrative is changing on a on a daily basis. And if you’re if you’re if you’re looking to make a quick bucks a year or you’re looking to get in and out of positions, you know, good luck to you.<\/p>\n

JOHN PETRIDES
It’s really complicated. It’s not the space that I plan. If you are an investor and you’re willing and you understand what your financial objectives are and you’re looking to build wealth and hold, you know, an asset class or a stock and look out 2 to 3, 3 to 5 years. In terms of the timeline, when you’re looking to take, that you have to make an investment, then I think there’s clearly opportunity to be had here.<\/p>\n

JOHN PETRIDES
And I think that, you know, the inertia, the volatility that we’re seeing in the market, something we really haven’t seen since this time last year, you know, outside of Liberation Day in 2025, the market, by and large, is relatively calm. You know, the these are opportunities to, to pick up some valuable franchises on the cheap.<\/p>\n

JOHN PETRIDES
That you could, potentially grow a lot of wealth for you and your family. And so, so it really is determining who you are in this environment. If you’re a trader. I think this is a really tricky time to invest. If you are an investor with a longer term time horizon, I think you have discerning enough.<\/p>\n

JOHN PETRIDES
There’s a lot of value out there.<\/p>\n

CAROLINE WOODS
Okay. I think this is a good time to pivot to our rapid fire, this or that portion of the program. It’s your first time playing John. Are you ready? Quick questions, quick answers I’m ready.<\/p>\n

JOHN PETRIDES
I’m ready.<\/p>\n

CAROLINE WOODS
Here we go.<\/p>\n

Lean in or play defense.<\/p>\n

JOHN PETRIDES
Play defense.<\/p>\n

CAROLINE WOODS
Safety and mega caps are value in small caps.<\/p>\n

JOHN PETRIDES
Safety and mega caps.<\/p>\n

CAROLINE WOODS
I trade durable or overextended.<\/p>\n

JOHN PETRIDES
What part? I would say durable oil.<\/p>\n

CAROLINE WOODS
Temporary spike or sustained pressure?<\/p>\n

JOHN PETRIDES
Sustained pressure.<\/p>\n

CAROLINE WOODS
Geopolitics. Noise or real market driver?<\/p>\n

JOHN PETRIDES
Real market driver.<\/p>\n

CAROLINE WOODS
Macro risk. Inflation spike or growth scare?<\/p>\n

JOHN PETRIDES
Growth scare.<\/p>\n

CAROLINE WOODS
Recession. Risk. Overblown or under priced.<\/p>\n

JOHN PETRIDES
Overblown.<\/p>\n

CAROLINE WOODS
Wait for clarity or put money to work.<\/p>\n

JOHN PETRIDES
Wait of clarity.<\/p>\n

CAROLINE WOODS
If you could only own one sector for the rest of the year, what would it be?<\/p>\n

JOHN PETRIDES
Health care.<\/p>\n

CAROLINE WOODS
Because you like both U.S. stocks or international stocks?<\/p>\n

CAROLINE WOODS
International<\/p>\n

treasuries or gold? Gold going back actually developed or emerging markets?<\/p>\n

JOHN PETRIDES
Emerging markets.<\/p>\n

CAROLINE WOODS
Election year headwind or tailwind?<\/p>\n

JOHN PETRIDES
Headwind.<\/p>\n

CAROLINE WOODS
One word to describe how you’re feeling about the market right now.<\/p>\n

JOHN PETRIDES
Gives you used.<\/p>\n

CAROLINE WOODS
One word to describe where you think the market will be by the end of this year.<\/p>\n

JOHN PETRIDES
Was.<\/p>\n

CAROLINE WOODS
Higher<\/p>\n

John Petrides he\u2019s Portfolio Manager, Tocqueville Asset Management, thank you so much for playing for your picks and for your perspective. Really appreciate it.<\/p>\n

JOHN PETRIDES
Thanks for having me on. This is great.<\/p>\n

#sectors #Wall #Street #quietly #rotating<\/p>\n","protected":false},"excerpt":{"rendered":"

Transcript:CAROLINE WOODSJoining me now, John Petrides portfolio manager at Tocqueville Asset Management. John, great to…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[259],"tags":[555,7336,3915,2807,2806],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/3237"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3237"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/3237\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}