Following the Democratic landslide victory, a very clear trading preference emerged in the market: investors preferred to hold large, high-quality companies with clear financing capabilities and computing resources, making large-cap tech a safe haven once again. As for JPMorgan Chase's own allocation, they continue to employ a "barbell strategy" of tech stocks + cyclical stocks, but with a higher weighting for cyclical stocks. They will still bet on a tactical rebound in tech stocks. However, the market may increasingly differentiate between winners and losers in the tech/AI sector. Consumer and financial stocks within the cyclical sector are likely to continue performing well, especially given the continued steepening of the yield curve.
