Wellington’s Geary Says Stocks Rotation Trade Is Coming Back

Scott Geary, head of global wealth at Wellington Management, stated that a rotation trade in stocks is returning as the end of the Iran war is increasing investor interest in companies outside the United States. Geary indicated that this shift is driven by a decrease in geopolitical risk, which typically makes investors more comfortable with international equities. He noted that while US markets have performed strongly, the perceived reduction in global instability is prompting a re-evaluation of portfolio allocations. This rotation could lead to increased investment in emerging markets and other international stock exchanges, potentially benefiting sectors that have been overlooked during periods of heightened geopolitical tension. The expectation is that this trend will continue as global economic conditions stabilize and investor confidence in international markets grows.