Differentiate to diversify

March 2, 2026

Time to Read: 3:38 mins

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

Chart of the week | Macroeconomic

Tracking the margin uptrend

Rising margin expectations continue to support equities, underscoring the resilience of corporate profitability in the face of last year’s tariffs and this year’s Middle East war. The U.S. remains especially strong compared to peers, though first quarter earnings will be an important test.

Chart of the week | Macroeconomic

Time to buy tech?

Technology valuations have meaningfully declined over the past year, but the sector continues to stand out for its strong earnings growth and relative resilience. While near-term uncertainty remains, tech still appears well positioned as a key driver of broader market growth.

Reports | Macroeconomic

Monthly Checkpoints

Checkpoints is a comprehensive monthly chartbook highlighting major top-of-mind themes that could shape financial markets in the near term. In addition to the broader macroeconomic discussion, Checkpoints delivers detailed views on major asset classes, including global equities, fixed income and real assets.

Chart of the week | Macroeconomic

Job market hanging in there

Recent jobless claims data point to a resilient U.S. labor market, with both initial and continuing claims remaining low and signaling that unemployment is still contained. Although job growth has softened and remains subdued, March’s job growth of 178,000, the highest since 2024, is encouraging. Our constructive outlook still holds despite continued uncertainty related to the war in the Middle East.