Portfolio Rebalancing

Market strategist Jim Cramer advises investors to seize the current market rotation as a chance to rebalance portfolios. He suggests divesting from underperforming assets and reinvesting in strong companies, particularly in AI infrastructure like semiconductors and data center equipment. Cramer sees temporary dips as buying opportunities due to robust underlying demand. He views Meta’s pivot into cloud computing as a positive long-term move, while remaining skeptical of rebounds in software, consumer staples, and apparel sectors without strong fundamentals.

Foreign investors are selling billions in South Korean stocks, despite the Kospi’s strong performance. This selling, particularly in tech and auto sectors, is attributed to portfolio rebalancing as Korean equities’ weightings increase in global benchmarks, triggering regulatory ownership limits. Domestic buying, driven by retail investors, more than offsets these outflows, with analysts remaining bullish on Korea’s fundamental outlook.