Feb. 26, 2026 12:11 PM ETRoundhill Magnificent Seven ETF (MAGS), SP500, SPX, VOO, SPY, IVV, NDX, QQQ, DJI, DIA, RTY, IWMJack Bowman9.04K FollowersCommentsRecent market rotation has pushed value sectors like materials, energy, and utilities to outperform the S&P 500 YTD, despite lackluster earnings growth.Valuations in traditional value sectors have expanded rapidly, with some now appearing stretched and potentially unattractive even to value investors.The premium for Big Tech has sharply compressed, realigning valuation spreads to pre-pandemic levels and raising questions about relative sector attractiveness.The rapid narrowing of valuation gaps signals the rotation may be overextended, warranting caution as earnings fundamentals have not kept pace.K_Thalhofer/iStock via Getty ImagesI've been talking on and off about a market rotation since October last year, but most recently in “The Mag 7 Hit A Critical Level.” The short of it, to catch new readers up toThis article was written byJack Bowman9.04K FollowersWriter | Investment Advisor | Economics Wonk | Top 5% on TipRanks | Long Signal, Short Noise | Author of The Macro Obsession, a weekly newsletter on current events and trends in finance, tech, and the real economy. My work focuses on my quest to uncover narrative trends before mainstream financial media, a process I've been describing as the hunt for information alpha. It is chart-heavy, macro-oriented, and data-driven.I invest across securities and asset classes. My focus has largely been on ETF investing, and I am known as a macro analyst, though I do cover stocks that I am personally trading or considering for my portfolio. These are typically technology and next-gen energy stocks or large caps with a juicy story.“Successful investing requires holding uncomfortably idiosyncratic positions.” — Howard Marks, paraphrasing David Swensen “History does not repeat, it instructs.” — Timothy Snyder, On TyrannyAnalyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT, GOOGL, AMZN, PLTR, ADBE, CRM, NET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments