Three reasons to stick with growth stocks in rotating markets

US growth stocks underperformed in early 2026 amid AI disruption fears and an unresolved conflict in the Middle East. But these stresses could create favourable conditions for selective, diversified investors to unlock long-term growth potential in a rotating market. Equity market dynamics have been shifting rapidly this year. First, a sell-off in software stocks over AI concerns and the underperformance of the Magnificent Seven mega-caps prompted a rotation toward value equities and defensive sectors. Then, equities fell sharply in March on the Iran war and oil price shock, and rebounded in...