Brown says the market is broadening out. That's what people say when the thing that went up stops going up and they need you to buy the thing that didn't go up so they can sell the thing that did go up.
He wants you in insurance and industrials. Insurance. The business model where you collect premiums for decades and then hire seventeen lawyers to avoid paying a claim because the policyholder wrote "lower back pain" instead of "lumbar discomfort" on page forty-three of the application.
Industrials, though. That's the real play. Companies that make ball bearings and conveyor belts and the little rubber gaskets that go inside the thing you've never heard of. Riveting stuff. The AI trade gave you Nvidia going up four hundred percent. The broadening trade gives you a company that manufactures industrial lubricant experiencing a thrilling eight percent annual return if the CFO doesn't get caught doing fraud.
Brown is not wrong that rotation happens. Money moves. Sectors take turns. This is how markets work when the momentum dies and everyone pretends they saw it coming. What's funny is the suggestion that you, specifically, will time this correctly. You won't. You'll read this headline, get excited about diversification, buy an insurance ETF at the peak of the broadening narrative, and then watch tech rip another thirty percent while your Hartford Financial shares go sideways for eighteen months.
The market broadens out the same week you decide to chase it. Then it narrows again. Then someone else appears on television to tell you what's broadening next. You'll believe them too.
Photo by Nick Chong on Unsplash
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