Tech companies dominated the stock market over the past decade, but with stubborn inflation forcing the Federal Reserve to aggressively raise interest rates, their reign may be coming to an end. “Bear markets have historically resulted in leadership change,” wrote Bank of America equity strategist Savita Subramanian in a Wednesday note, “which suggests old economy sectors are likely the winners of this cycle.”
After years of the Fed’s zero-interest rate policy (ZIRP) fueling speculative investments in tech firms that were able to use cheap debt to finance rapid growth, the era of “free money” is over, according to the bank.
