Investors are rediscovering a basic truth of finance: when too much money piles into the same trade, the exits can feel suddenly narrow. The fashionable word is "rotation". It describes a move away from the largest technology firms towards smaller, cheaper and less glamorous parts of the market. The evidence is hard to miss. America’s biggest tech companies have recently dragged the main indices lower. The Nasdaq 100 has stumbled, and the S&P 500 has dipped, even though most individual stocks have actually been rising. All 11 of the largest American firms by market value fell in the same session.
