I would hold QQQ, but avoid adding aggressively at current levels. September CPI at 3.7% shows inflation is still sticky, and higher-for-longer rates are particularly painful for expensive, long-duration tech and AI names. The fact that QQQ fell nearly 2% while defensive sectors held up better shows that rotation risk is real.
That said, I would not abandon tech either. AI-related earnings growth remains strong, and selling QQQ after a rate-driven correction risks missing the rebound if inflation cools again.
My preference: keep the core QQQ position, but direct some new money towards healthcare, financials and other reasonably valued sectors. This reduces concentration risk without making a binary bet against AI.
For me: Hold QQQ + diversify new capital > sell QQQ completely. The next few inflation readings and Q3 earnings will determine whether this is merely a valuation reset or the start of a deeper rotation.
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