Report published September 28, 2026
Why Should Investors Broaden Beyond US Stocks? – UBS Portfolio Positioning
UBS · September 28, 2026
While US equities continue to deliver strong earnings, elevated market concentration creates substantial risk for investors. UBS recommends diversifying into Europe, Japan, and Asia ex-Japan to capture broadening global profit growth.
Read the remaining 3 pages
Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.US equities account for over 60% of global indexes and experienced ~35% Q2 earnings growth, but heavy concentration creates company-specific portfolio risk.
- 2.Earnings growth is broadening outside the US and AI, with European corporate earnings projected to rise 15% in 2026 and 2027, and MSCI Asia ex-Japan earnings forecast to grow 72% this year.
- 3.Investors should diversify equity exposure beyond the US into Europe (notably the Eurozone), Asia, and emerging markets, with sector preferences in industrials, healthcare, 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
Report data
Key figures extracted from this report
| Metric | Estimate | Context |
|---|---|---|
| US share of global equity index | 60.0% | The US accounts for over 60% of global stocks in global equity indexes. |
| S&P 500 underlying profit growth | 35.0% | Year-over-year earnings growth for S&P 500 companies in the second quarter, the strongest quarter in more than four years. |
| European corporate earnings growth forecast | 15.0% | Projected annual corporate profit growth for European equities. |
| MSCI Asia ex-Japan earnings growth forecast | 72.0% | Forecast earnings growth for MSCI Asia ex-Japan this year. |
| Japanese corporate earnings growth forecast | 12.0% | Projected earnings growth for Japanese equities for the fiscal year ending March 2027. |
Reports in this series
UBS House View Briefcase is shown in chronological order through this edition, published on September 28, 2026.
Part of the UBS House View Briefcase series — view all 65 editions
Looking for the latest edition? How will Fed rate hikes impact markets en 1667844 (Oct 12, 2026)
Access the full report
And others from the leading tier 1 banks.
Free account: read previews and a daily allowance of full reports. Pro removes the daily limit.