How sustainable is the narrow leadership of US equity markets? With aggressive AI-related capex plans raising concerns about long-term returns, investors have been reassessing concentrated positions in US mega cap technology and turning their attention elsewhere. What should be in focus as they look to broaden their portfolios?

In this edition of Moving Markets – The View Beyond, Bernadette Anderko is joined by Nenad Dinic, one of Julius Baer’s equity strategists, to discuss the drivers behind the current equity market rotation. They explore the broadening of market leadership beyond the AI-linked hyperscalers, the implications of massive capital expenditure plans, and the importance of selectivity within software and IT. The conversation also covers renewed investor interest in non-US equities, with a focus on Europe, Switzerland, Japan, and emerging markets, as well as sector preferences for healthcare, financials, and miners. Nenad shares why diversification is more critical than ever as investors position for the next phase of the cycle.

(00:00) - Introduction
(01:07) - Factors behind the improvement in market breadth
(03:35) - How AI is reshaping equity leadership
(05:45) - Is the software selloff overdone?
(08:12) - Diversification beyond US equities: Flows and drivers
(09:20) - Regions benefiting from the broadening
(12:04) - Healthcare, financials, and miners
(13:58) - Key takeaways
(14:27) - Closing remarks and legal disclaimer

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The View Beyond: Diversifying beyond Big Tech

Moving Markets

The View Beyond: Diversifying beyond Big Tech