The David Lin Report · Friday, August 7, 2026
David Nikowski notes a rotation into previously underperforming sectors like financials and healthcare, which have shown improved relative strength over the last four to five weeks. He suggests that the concentration risk in the tech sector might be greater than anticipated, with tech stocks down significantly.
“Um, you know, over the last, uh, since the end of June, you've seen quite a bit of rotation into, you know, sectors that have been underperforming dramatically.”
“So you, you are seeing relative strength improve, uh, you know, within financials, healthcare, and to a lesser degree into staples.”
“I I think it's a real rotation. I think the magnitude of the concentration risk that you're getting out of tech, um, may may end up coming short of expectations.”