There is a common pattern in new technology cycles…
The innovation itself appears. Then, a bottleneck emerges. Next, capital floods in to solve the problem. Finally, the regime changes.
We saw this “regime change,” or complete reorganization of stock market winners and losers, in the in the dot-com bust phase.
Capital rotated out of the high-profile names and into a variety of other sectors, including base metals, precious metals, energy insurance, and utilities.
Another regime change is happening now.
This post originally appeared at InvestorPlace.