Tech Money Shifts Toward Health Care as Real Rates Draw Attention

October 14, 2026 - 18:18

Investors are watching a notable rotation of technology capital into the health care sector, according to Jeff deGraaf, chairman of Renaissance Macro Research. Speaking during a market segment, deGraaf outlined how money that once flowed freely into software, semiconductors, and other tech names is increasingly finding its way into health care stocks and related ventures.

The shift reflects a broader reassessment of where growth can still be found as real interest rates remain elevated. Higher real rates tend to pressure long duration assets, and many technology companies fall into that category because so much of their expected value sits far in the future. Health care, by contrast, offers a mix of defensive cash flows, patent protected products, and innovation driven upside that can appeal when the cost of capital is less forgiving.

DeGraaf also pointed to the interplay between real rates and sector leadership. When real yields rise, investors often favor businesses with nearer term earnings and clearer pricing power. Health care fits parts of that profile, especially in areas such as medical devices, diagnostics, and treatments with steady demand regardless of the economic cycle.

The rotation does not mean technology is being abandoned. Rather, it suggests a more selective approach, where capital looks for durable returns across sectors instead of concentrating in a single theme. For market participants, the takeaway is that real rates remain a key variable shaping where money moves next, and health care is emerging as one of the clearer beneficiaries of that shift.