US midterms could accelerate stock market rotation, with Goldman Sachs calling healthcare the next leg of the AI trade. The takeaway: election outcomes may speed up capital moving across sectors, and

What happened: Goldman Sachs' Lou Miller said the US midterms could speed up stock market rotation, with healthcare seen as the next leg of the AI trade and a defensive sector. Key numbers: Data centre stocks down 36 per cent from highs, memory stocks 42 per cent, optical networking 46 per cent, NeoCloud 57 per cent. Why it matters: Miller said investors were already very defensive, with low beta-adjusted net exposure, and that lower valuations set a lower bar for positive surprises. He cautioned that expensive defensives like consumer staples are less attractive. Coverage: 3 outlets in 24h

Goldman Sachs' Lou Miller said the US midterms could speed up stock market rotation, with healthcare seen as the next leg of the AI trade and a defensive sector.

Miller said investors were already very defensive, with low beta-adjusted net exposure, and that lower valuations set a lower bar for positive surprises. He cautioned that expensive defensives like consumer staples are less attractive.