How Can Investors Diversify Their Equity Holdings

UBS maintains a positive medium-term outlook for global equities but warns that market concentration necessitates broadening exposure across sectors and regions. The report suggests rebalancing out of over-concentrated tech positions into more diversified, value-oriented, and structured opportunities.

Key Takeaways

• 1.The medium-term outlook for equities remains positive due to strong corporate earnings.
• 2.Market concentration and macro risks make diversification across sectors and regions essential.
• 3.Investors should use megacap tech rallies to rebalance portfolios and potentially add structured investments for capital preservation.

Table of Contents

• How can investors diversify their equity holdings?
• 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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