Diversify Across Equities

This report recommends that investors reduce concentration risk in their equity portfolios by diversifying across regions, sectors, and themes. It highlights that while AI momentum has driven gains, broadening exposure now can better balance risk in the current cycle.

Key Takeaways

• 1.High index concentration in AI-linked stocks is creating significant positioning risk for investors.
• 2.Investors should broaden core equity allocations across preferred regions and sectors to reduce single-stock reliance.
• 3.Market strength should be used as an opportunity to rebalance into broader, multifactor equity strategies.

Table of Contents

• Diversify across equities
• Diversify single-stock exposure across regions and sectors
• Add exposure with differentiated return drivers
• Use periods of strength to rebalance into broader equity exposure
• Global asset class preferences definitions
• Appendix

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