As stock indexes climb out of their slump, many investors are quietly reshuffling their portfolios. Some are leaning into high-growth technology names, others are backing away from interest-sensitive sectors like real estate, and most are still determined to stay in the market.

Understanding these shifts can help you decide whether to follow the crowd or deliberately do something different.

New Bull Phase

Major benchmarks have recently crossed the common “bull market” marker: a gain of at least 20% from the most recent low. That label doesn’t guarantee smooth sailing, but it does change sentiment. After months of caution, investors are starting to talk more about opportunity than survival, and that mindset is showing up in survey data and trading flows.

A large-scale survey of retail investors found that roughly nine out of ten respondents expect to keep investing over the next three months. That level of participation matters. Sustained rallies usually need both rising prices and ongoing cash inflows. At the same time, professional strategists still highlight slower growth, weaker household savings and uneven earnings as potential speed bumps.

Tech Takes Lead

The standout winner of this early bull phase has been technology. In the survey, about 23% of investors said they plan to increase their exposure to tech stocks in the coming months. That aligns with recent market performance, where large software, semiconductor and data-center names have surged ahead of the broader index.

The attraction is obvious. Many technology companies combine strong revenue growth prospects with scalable business models. Themes like automation, cloud computing and advanced analytics continue to draw long-term capital. When markets turn optimistic, these growth stories often see money rush in first, amplifying their gains relative to more defensive sectors.

However, concentrating too heavily in one hot corner of the market can backfire. Tech stocks tend to be volatile, and the same momentum that drives rapid gains on the way up can magnify losses during pullbacks. Thoughtful investors usually pair tech exposure with steadier holdings to keep overall risk in check.

Financials Revisited

Technology is not the only area drawing fresh money. Around 12% of surveyed investors intend to add to financial services stocks. This group covers large banks, asset managers, payment networks and insurance companies, among others. Financials often benefit from a healthier economic backdrop. When business activity improves and borrowing stabilizes, loan demand and transaction volumes can rise. Some firms in this sector also pay regular dividends, making them appealing to investors seeking both potential growth and income.

Still, financial stocks can react sharply to changing interest rate expectations and regulatory headlines. Anyone increasing positions here should understand how a particular company earns its profits and how sensitive that model is to credit conditions and policy changes.

Real Estate Retreat

Not every sector is enjoying renewed enthusiasm. Roughly 15% of investors surveyed said they plan to reduce their exposure to real estate-related stocks. These can include listed property trusts/funds and companies tied to commercial or residential property markets.

After a period of rapid price increases and higher borrowing costs, parts of the property market have come under pressure. Rising financing expenses can squeeze returns for highly leveraged owners, while uncertainty about office demand and consumer spending has weighed on some real estate segments.

Older investors in particular appear more likely to trim these holdings, perhaps because they are closer to drawing on their portfolios and want to limit exposure to rate-sensitive assets. Reducing real estate allocations is one way to dampen volatility, but it also means giving up the potential long-term income that quality property assets can provide when conditions normalize.

Discretionary Cutbacks

A similar story is unfolding in consumer discretionary stocks, which include companies tied to non-essential spending such as travel, hospitality and specialty retail. Around 14% of investors said they expect to scale back in this area. These businesses are closely linked to confidence and disposable income. When households feel flush, they are more willing to book trips, upgrade items or try new experiences, which helps discretionary firms. When savings thin out and people focus on necessities, revenues can become more fragile.

By easing back on these holdings, investors may be acknowledging that consumer strength has limits after years of elevated prices and shifting work patterns. That does not mean every company in this group is doomed to struggle; it does suggest that selective stock picking matters more here than in broad, diversified index exposure.

Optimism Versus Risks

The overall message from the survey is cautious optimism. Most investors are staying engaged, rotating between sectors rather than exiting the market entirely. That behavior fits typical early-bull-market dynamics, where enthusiasm builds but memories of recent declines keep investors from going all-in.

Market strategists still point to meaningful headwinds: slower global growth, tighter lending standards and profits that, in some industries, are under pressure. A bull market label does not guarantee uninterrupted gains. Stocks can experience sharp pullbacks even within a longer upward trend.

“Diversification is the only free lunch in investing,” said Harry Markowitz, an economist.

For long-term investors, the key is recognizing that both confidence and fear can be overdone. Chasing whatever has recently soared or fleeing any sector that has stumbled often leads to buying high and selling low, the opposite of building durable wealth.

Positioning Your Portfolio

So what should an individual investor do with this information? Rather than copying survey respondents trade for trade, it can be more useful to treat these trends as clues. Growing tech allocations highlight where optimism is strongest. Cuts to real estate and discretionary sectors show where concerns cluster.

A sensible starting point is to review your own asset mix. Does technology dominate your holdings after the recent rally? Are defensive sectors or bonds underrepresented? Have you allowed personal enthusiasm or anxiety about a specific theme to distort your original plan? Periodic rebalancing back to a target allocation can automatically trim winners and add to laggards in a disciplined way.

It is also worth checking that each sector in your portfolio serves a role. Growth names may drive long-term appreciation, while dividend payers and high-quality bonds may help cushion downturns. Real estate and other alternatives can add diversification if held at reasonable levels. An allocation tied to your time horizon and risk tolerance usually matters more than correctly guessing the next hot theme.

Final Takeaway

Early in a bull market, it is tempting to chase whatever appears unstoppable and abandon whatever feels stuck. The latest survey data shows many investors leaning toward tech and financials while stepping back from real estate and some consumer-focused names, all while keeping money in the market.

Instead of reacting purely to headlines, consider whether your portfolio still matches your goals, time frame, and comfort with volatility. Small, deliberate adjustments today can leave you better positioned whether the rally continues or conditions turn choppier.