Report published September 7, 2026
UBS Research: Why Investors Should Broaden Beyond US Stocks and AI Concentration
UBS · September 7, 2026
UBS advises investors to diversify equity holdings outside the US into Europe, Japan, and Emerging Asia as earnings growth broadens beyond US mega-cap tech and AI. This geographic and sector expansion helps capture strong international profit growth while mitigating high portfolio concentration risk.
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Key Takeaways
- 1.While US equities account for over 60% of global indexes, heavy concentration poses company-specific risks, requiring broader diversification.
- 2.Earnings growth is broadening beyond US AI into Europe and Asia, with MSCI Asia ex-Japan earnings forecast to expand 72% this year and European earnings by 15% annually in 2026 and 2027.
- 3.Investors should diversify globally into preferred markets (Eurozone/Germany, Japan, China, Taiwan, India, Singapore, Australia) and sectors including industrials, health care, consumer discretionary, European banks, and European IT.
Table of Contents
- Key message
- 01 Investors may focus chiefly on US stocks given their importance and the pace of earnings growth.
- 02 But we believe the earnings story extends beyond the US and AI.
- 03 So, investors should diversify stock allocations across preferred regions, sectors, and return drivers.
- New this week
- One liner
- Did you know?
- Investment view
- Non-Traditional Assets
Report data
Key figures extracted from this report
| Metric | Estimate | Context |
|---|---|---|
| US share of global stocks | 60% | US proportion of global equity indexes |
| S&P 500 Q2 underlying profit growth | 35% | Year-over-year earnings growth for S&P 500 companies, strongest in four years |
| European corporate earnings growth forecast | 15% | Projected annual corporate profit growth in Europe |
| MSCI Asia ex-Japan earnings growth forecast | 72% | Earnings growth forecast for the region this year |
| Nikkei 225 weekly return | -2.1% | Japanese index performance last week amid elevated oil prices and rising yields |
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