Report published September 25, 2026
Rotation Into Tech Still Has Room to Run: Deutsche Bank Strategy & Positioning Update
Deutsche Bank · September 25, 2026
Deutsche Bank reports that the rotation into Mega-Cap Growth & Tech stocks has further room to run, as sector positioning at the 80th percentile remains well below historical peak extremes. Overall equity positioning rose to modestly overweight, with systematic strategy exposures at high percentiles leaving them vulnerable to volatility shocks while discretionary investors stay cautious due to elevated interest rate volatility.
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Finvaulta summarizes Deutsche Bank's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.The rotation into Mega-Cap Growth (MCG) & Tech that started in late July is advanced (+14% to a new record high) but still has room to run, with positioning at 0.8sd (80th percentile) well below prior cycle peaks near 2sd (99th percentile).
- 2.Aggregate equity positioning rose to modestly overweight (0.25sd, 58th percentile), driven by systematic strategies reaching the 89th-91st percentile while discretionary investors remain cautious and only moderately overweight/underweight due to elevated rates volatility.
- 3.Equity funds suffered their first weekly outflows in three months (-$10.2bn), driven by US outflows (-$21.2bn) and EM outflows (-$3.9bn), whereas bond funds received accelerated inflows of $17.3bn and money market funds absorbed $11.6bn.
Table of Contents
- Rotation Into Tech Still Has Room To Run
- Charts of the Week
- Positioning and flows detail
- DB S&P 500 Forecasts
- Consolidated Equity Positioning
- Sector Positioning
- Volatility-Sensitive Systematic Strategies
- Vol-Control funds allocations
- CTA portfolio weights
- Risk-Parity funds portfolio weights
- Investor Sentiment
- Equity Short Interest
- Option Metrics
- S&P 500 Options: Vol, Skew, Correlation
- Equity funds beta to the S&P 500
- Cross-Asset Fund Flows
- Equity Fund Flows
- Bond Fund Flows
- Cross-Asset Futures Positioning
- Equity Futures Positioning
- Bond Futures Positioning
- FX Futures Positioning
- Commodity Futures Positioning
- Buybacks Tracker
Report data
Positioning in MCG & Tech has risen and is clearly overweight but well below prior peaks while that in other sectors is below neutral
| Metric | Estimate | Context |
|---|---|---|
| S&P 500 Year-End 2026 Target | 8000 points | Deutsche Bank's official target for the S&P 500 index. |
| S&P 500 2026 EPS Forecast | 358 USD | DB EPS forecast for the S&P 500 in 2026. |
| S&P 500 2027 EPS Forecast | 420 USD | DB EPS forecast for the S&P 500 in 2027. |
| MCG & Tech Performance Since End of July | 14% | Performance of Mega-cap Growth & Tech stocks since the rotation call in late July. |
| MCG & Tech Positioning Z-Score | 0.79 standard deviations | Positioning in MCG & Tech stands at the 80th percentile, notably overweight. |
Reports in this series
Investor Positioning and Flows is shown in chronological order through this edition, published on September 25, 2026.
Part of the Investor Positioning and Flows series — view all 13 editions
Looking for the latest edition? DB Parag Thatte Investor Positioning and Flows Rates Vol Taking A Toll Oct 2 (Oct 2, 2026)
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