Tech’s shine is fading, making way for differentiated portfolios to flourish, says BNY Investments Newton global equity income portfolio manager, Jon Bell.
Key points:
- The market has been fixated on hyperscalers/large language models (LLMs), but focus is shifting downstream to areas like power infrastructure, semiconductors, and capital equipment.
- The global equity market has been dangerously concentrated. The top five stocks represent about 20% of the index, with rising correlations, increasing valuations and heightened concentration risk.
- The BNY Mellon Global Equity Income strategy has been underweight the information technology sector.
- Having a yield discipline avoids LLMs, software and information services which is pertinent now that the market is looking beyond these areas.
- Bell believes a disciplined, differentiated portfolio could benefit as correlations break and opportunities expand across the market.
3107359 Exp: 1 June 2026
