History says the Great Rotation is just getting started

Infrastructure-focused stocks such as Clearfield and Belden are drawing attention as investors rotate toward areas tied to real-economy demand. While market shifts rarely move in a straight line, early 2026 performance suggests leadership is broadening beyond traditional tech exposure.

Rotation signals: tech down, industrials and staples up

In early 2026, the iShares Expanded Tech-Software Sector ETF is down more than 20%, while industrials and consumer staples are up double digits. The S&P 500 Equal Weight index is also outperforming, a pattern that typically appears mid-rotation rather than at the end.

Against that backdrop, the article highlights tech-adjacent and telecom infrastructure names that have not been crowded trades.

Clearfield: government-funded broadband tailwind

Clearfield (CLFD) designs, manufactures, and distributes fiber optic management and delivery solutions used by broadband operators to connect homes and businesses to high-speed internet.

Recent results and product development

In fiscal 2026’s first quarter, Clearfield grew net sales 16% year over year to $34.3 million and expanded gross margin by 4 percentage points to 33.2%. The company also launched its NOVA Platform, described as a modular fiber ecosystem intended for higher-density installations in data centers, enterprise facilities, and community broadband central offices.

BEAD-related demand outlook

The key catalyst cited is federal funding already committed under the Broadband Equity, Access, and Deployment program (BEAD), described as the largest broadband infrastructure subsidy in U.S. history. Analysts modeling Clearfield’s business are building in BEAD-related demand growth of more than 20% in calendar 2026.

Management also indicated that community broadband providers—Clearfield’s core customers—are expected to deploy BEAD funds faster than Tier 1 operators due to their more agile structure.

The fiber market is projected to grow from roughly $19.1 billion in 2022 to $29.7 billion by 2026, implying a compound annual growth rate of 13.1%. The article frames this as additional exposure to consistent government-backed spending.

Key risk: execution and integration

The article cautions that execution risk remains. Guidance for Q2 came in below some expectations, and the company is still integrating changes from its Nestor divestiture. It characterizes the path as uneven, but argues that smaller infrastructure growth stocks can benefit during a rotation into real-economy demand.

Belden: industrial automation and networking infrastructure

Belden (BDC) supplies cables, switches, firewalls, and networking hardware used to connect industrial facilities, data centers, smart buildings, and broadband networks.

Segment growth and strategic shift

The industrial segment, covering infrastructure digitization and automation, is described as growing at roughly 8% annually. The enterprise segment covers network infrastructure and broadband solutions.

The article notes Belden’s deliberate shift away from low-margin commodity products toward integrated, higher-value industrial IoT and networking solutions, which it says should improve margins over time.

Implications for investors during the “Great Rotation”

The article emphasizes that rotations do not move in straight lines and that both smaller infrastructure plays and industrial names can be volatile as capital shifts unevenly across markets. It advises against trying to time trades too precisely.

Still, if the “Great Rotation” continues to broaden, the article argues that companies like Clearfield and Belden are positioned in under-the-radar areas tied to real-economy growth.