The David Lin Report · Friday, July 3, 2026
On July 2nd, the Nasdaq fell 1.5% and the S&P 500 dropped 0.64% as investors rotated out of tech stocks, particularly those tied to the AI theme. Sam Roman, portfolio manager at Hedge I Asset Management, observed a divergence from risk-off assets like gold and Bitcoin, suggesting a potential shift away from tech into undervalued assets. Money is moving out of tech into sectors like healthcare, consumer staples, and financials.
“1.5% down. The Nasdaq is 1.5% down. The S&P is about 64 basis points down. Gold is having a pretty good day, up 1%. And Bitcoin's having a pretty good day, up two and a half percent as well.”
“But it could be the start of a bigger rotation away from tech stocks into undervalued assets. Is that what's happening right now, Sam? How do you interpret current market action?”
“Yeah, I think right now what you're seeing is a bit of an unwind. So positioning-wise, a lot of people were very overweight semiconductor and related stocks, really tied to the AI theme. I think the last couple of days, you're starting to see that unwind and it's kind of accelerating today.”
“And on the other side of it, the beneficiaries are everything that is not not AI. So, healthcare stocks are up, consumer staples stocks are up, financial stocks are up. So basically, money's moving out of tech to everything else.”