Katie Stockton Still Sees a Bull Market. So Why Is Her ETF Only 50% in Stocks?

The secular bull market persists despite significant concerns regarding narrow market breadth and the concentration of leadership within mega-cap technology stocks. While the S&P 500 and NASDAQ 100 reach new highs, technical indicators show deterioration in broader segments, creating a challenging environment for diversified portfolios. Rising 10-year Treasury yields represent a meaningful headwind, with technical breakouts signaling a potential long-term uptrend. Katie Stockton, founder of Fairlead Strategies, advocates for prioritizing price action over breadth divergences, noting that sector rotation and technical models—such as the cloud model—remain essential for navigating volatility. Semiconductors and AI-related sectors continue to drive market momentum, while tactical strategies involving gold, oil, and Bitcoin offer potential hedges against weaker equity performance. Investors should focus on disciplined, rules-based technical analysis to manage risk and identify opportunities amidst shifting market cycles.