No one wants defensive stocks: Global defensive stocks are now just 17% of world market cap, near the lowest since the 2000 Dot-Com Bubble burst. This percentage has fallen -7 points since the end of the 2022 bear market. To put this differently, consumer staples, health care, and utilities have materially underperformed the broader market over the last few years. This has been fueled by the outsized gains in the US technology sector. A similar pattern occurred during the 1990s, while the opposite took place during the 2008 Financial Crisis, when global defensive stocks outperformed. Defensive sectors are lagging.