Big banks return cash as Big Tech gets punished for spending — rotate into JPMorgan and Goldman
Major banks just got a clean bill of health and are returning billions to shareholders, while the tech giants are getting hammered for over-spending. This creates a perfect setup for money to rotate out of expensive tech and into financial firms.
Idea
JPMorgan and Goldman Sachs just passed their stress tests with flying colors and immediately announced massive buybacks and dividend hikes, putting a hard floor under their valuations. Meanwhile, investors are aggressively punishing Microsoft for its heavy spending, suggesting the market is losing patience with Big Tech's high costs. Add in the fact that small caps are having their best run in decades, and the writing is on the wall: Wall Street is rotating money away from expensive tech and into reliable, shareholder-friendly financial firms.