Investors should rotate into value and cyclical stocks, expert advises

• Recommends rotating into value, cyclical, mid-cap, small-cap, and international stocks, moving away from the S&P 500 index.
• Cites improving manufacturing and housing data, with 70% of US regional and national services and manufacturing PMIs now in expansion.
• Notes strong S&P 500 Q4 earnings (up 13.3% from last year) and revenues (up 8.9% from last year), exceeding estimates.
• Believes midterm elections are bullish for the market and a potential new Fed chair (Warsh) is unlikely to halt the cyclical upturn.

Michael Kantrowitz advises investors to rotate from tech/growth stocks into value and cyclical sectors, including mid-cap, small-cap, and international markets. He highlights improving manufacturing and housing data, strong Q4 earnings, and views the upcoming midterms as bullish for these segments, suggesting a broader economic recovery beyond large-cap tech.