Conflict in the Middle East won’t stop market’s rotation away from U.S. tech stocks but accelerate it, says BCA strategist

MarketWatch

by Jules Rimmer

March 2, 2026

AI-Generated Deep Dive Summary

BCA Research has emphasized that the ongoing conflict in the Middle East is not only unlikely to halt the market's shift away from U.S. tech stocks but may actually accelerate it. The firm reiterates its conviction in energy and oil services companies, viewing them as more stable investments in the current geopolitical landscape. Additionally, BCA suggests adding exposure to a shipping tanker ETF, which they believe offers potential growth opportunities amidst rising tensions and increased demand for energy transportation. The conflict in the Middle East has created significant uncertainty in global markets, with investors seeking safer havens. Energy sectors, including oil and gas companies, are seen as relatively resilient during such periods, given their ability to generate steady returns regardless of market volatility. This aligns with BCA's broader strategy of focusing on sectors that are less affected by short-term market fluctuations. For readers interested in finance, understanding these sector rotations is crucial for informed investment decisions. The shift away from tech stocks highlights the importance of diversification and adaptability in a rapidly changing financial landscape. By emphasizing energy and oil services, BCA underscores the role of geopolitical factors in shaping market trends, while the inclusion of shipping tanker ETFs adds another layer of strategic diversification to their portfolio recommendations.

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Originally published on MarketWatch on 3/2/2026