The post How investors are rebalancing portfolios as tech volatility rises appeared on BitcoinEthereumNews.com.

Key points Investors aren’t exiting AI, they’re balancing it: Investors worried about over-exposure to the AI theme are rotating into sectors with steadier earnings (healthcare, materials, financials, energy) and adding old-economy exposures as stabilisers. Portfolio construction is doing more work: Equal-weight indices, quality tilts, low-volatility factors, and simple options are helping reduce dependence on mega-cap AI leaders. Investors are blending equity rotation with alternative hedges: While equity tilts help reduce concentration risk, many are also adding precious metals and miners to create a broader cushion against market volatility. AI has been the defining market theme of the past two years — but even powerful trends can experience fatigue. With the AI-heavy tech sector slipping this month, while healthcare, materials, financials and energy lead the S&P 500, many investors are asking a simple question: “How do I stay invested in the long-term AI story without being too exposed to short-term swings?” Below is a clear explainer of what investors are doing today, why these approaches are gaining traction, and the risks to keep in mind. 1. Rotating into stability and “old economy” leaders With the Nasdaq 100 down 1.3% MTD and the Dow up around 2%, investors are increasingly rotating into parts of the market with more earnings stability and less sensitivity to AI-driven sentiment. Where flows are going This month’s strongest performers include: Healthcare (+5.9%). Materials (+3.3%). Financials (+2.5%). Energy (+2.3%). Consumer Staples & Real Estate (both positive). Utilities (slightly positive). Source: Bloomberg Why these sectors attract flows These areas tend to offer: Steady earnings and defensive cash flows. Lower valuations compared with AI-heavy tech. Better earnings visibility. Less dependence on market sentiment. Lower volatility, making them useful stabilisers when AI leaders swing sharply. The idea behind the rotation Instead of exiting tech, investors are balancing AI-heavy portfolios with sectors…

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Filed under: News - @ November 13, 2025 8:24 am