How Can Investors Diversify Their Equity Holdings

UBS maintains a positive outlook for global equities while recommending investors rebalance concentrated positions. Diversification across regions and sectors is advised to mitigate risks from market concentration and volatility.

Key Takeaways

• 1.AI remains a powerful structural investment opportunity with capex expected to reach USD 1tr by 2027.
• 2.Market concentration warrants rebalancing and diversification into broader sectors and global regions.
• 3.Upside potential exists in global markets including Asia and specific sectors like health care and industrials.

Table of Contents

• Key message
• We believe AI remains a powerful structural investment opportunity.
• But we expect future gains to come from a broader range of sectors and regions, beyond the US mega-caps.
• We believe investors should take steps to rebalance concentrated positions.
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