How Can Investors Diversify Their Equity Holdings

UBS maintains a positive medium-term outlook for equities but urges investors to diversify beyond US mega-caps into a broader range of sectors and global regions. They recommend rebalancing concentrated tech positions into the AI value chain and cyclical sectors like industrials.

Key Takeaways

• 1.Equities remain resilient and the medium-term outlook is positive, supported by earnings and macro stability.
• 2.Broaden equity exposure beyond US mega-caps into other regions like Japan, Switzerland, and China, and sectors like health care and industrials.
• 3.Rebalance concentrated mega-cap tech positions into the AI value chain, automation, robotics, and structured investments.

Table of Contents

• Key message
• 01 We believe the medium-term outlook for equities is positive.
• 02 But we expect future gains to come from a broader range of sectors and regions, beyond the US megacaps.
• 03 We believe investors should take steps to rebalance concentrated positions.
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