Analysts Recommend Betting on Laggards for the Second Half of 2026

ETF Action strategist Mike Akins presented his outlook for the second half of 2026, urging investors to reassess their portfolio composition. He argues that several sectors significantly underperformed leading AI stocks in the first half of the year, concentrating the greatest growth potential in those areas going forward. The expert pays particular attention to Magnificent Seven stocks and software companies, which in his view have not yet fully reflected positive fundamental factors. A rotation of capital from overheated narrow themes into broader technology positions could create substantial upside. Akins recommends using ETFs as a tool for diversified exposure to these sectors at minimal transaction costs. The strategy is designed for a six-month horizon with active management anticipated if market conditions shift.