Recently, the investment sentiment in the US stock market has shifted. Industrial stocks and cyclical stocks are gaining popularity, and assets related to rate cut expectations are also rising. Conversely, the once-market darling—large technology companies—have recently underperformed. The data makes this clear: the Industrial Select Sector SPDR ETF (XLI) has risen 2.80% over the past month, while the Technology Select Sector SPDR ETF (XLK) has fallen 0.33%. Last year, the tech sector was still leading the market, but this year, the market's attitude towards it has become noticeably more冷淡.

However, Andrew Slimmon, senior portfolio manager at Morgan Stanley Investment Management, offers a different perspective: don’t rush to conclusions, as tech giants may be brewing a surprising rebound. He believes that the sell-off in Q4 was mainly due to a shift in capital preferences, not because of fundamental issues with these companies. Currently, many investors are thinking about short-term gains, and rate cut expectations have become the market focus. As a result, funds naturally flow into assets that appear more stable and offer quicker returns, leading to a temporary neglect of tech stocks.

Importantly, Slimmon points out that the current valuations of large tech stocks are actually more attractive. After this round of adjustment and underperformance, these companies have digested their previous high valuations, making them appear more reasonable now. This presents a good opportunity for savvy investors to position themselves.