ProShares CIO Backs Quality Stocks and Tech as 2026 Cyclical Rally Nears Peak

2 articles · Updated · Business Insider · Aug 5

Alessio de Longis said investors should shift toward quality stocks, technology, and defensive sectors as 2026 leadership in energy, industrials, and materials starts to fade.
Q2 and Q3 2025 GDP growth of 3.8% and 4.4%, rich 12-month forward earnings revisions, and weakening ISM manufacturing and services readings point to slower — but not recessionary — growth ahead, he said.
Technology is his preferred quality-heavy sector, with Nvidia, Apple, and Microsoft making up nearly 37% of XLK and also dominating the QUAL factor ETF.
He expects tame inflation and softer energy prices to keep short-end rates steady and pull long-end yields lower, a setup he says would support long-duration growth stocks and cheaper borrowing for tech firms.
To balance that exposure, he favors consumer staples, utilities, and healthcare, which typically hold up better when growth and interest rates both ease.