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

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