During healthy bull markets, investors routinely embrace risk-on strategies. High-flying tech stocks tend to outperform while defensive sectors and safe-haven assets are often disregarded.
But in 2026, we’re seeing the opposite. Now in its fourth year, the bull market has likely entered the late stages of its cycle. The Magnificent Seven continue to underperform, software stocks are suffering some of their worst losses since the last bear market, and investors are embarking on a flight to safety that has benefited cyclical and defensive investments.
