PGIM argues advisors should combine private equity, private credit and private real assets within a single flexible multi-asset allocation rather than static single-strategy exposures, citing diversification and historical return patterns. It also contends direct investment structures offer lower fees and greater transparency than fund-of-funds vehicles.
6 NOVEMBER 2026
The piece argues that a sharp selloff in AI-linked semiconductor and tech stocks reflects a necessary reset of crowded positioning and high capital spending, not the end of the broader AI investment theme. It contends long-term compute demand remains intact, while market leadership broadens beyond mega-cap tech.
Janus Henderson Investors argues China equities merit a strategic allocation, citing an innovation-led growth shift, attractive valuations, diversification benefits and shareholder-value reforms. It contends widening performance dispersion between winners and losers strengthens the case for active stock selection.
Schroders attributes the sharp tech-led equity sell-off to fears that a Democratic midterm win could slow AI infrastructure spending, but argues the structural AI case remains intact despite near-term volatility. It favours resilient equity exposure, higher-quality US stocks, and diversification via government bonds and alternatives.
J.P. Morgan's David Lebovitz argues that higher real rates, not inflation itself, are compressing private real asset valuations, with repricing speed and mechanics varying across real estate, infrastructure and transportation. He concludes future returns will depend on income and growth rather than multiple expansion.
Anthony Willis argues that the Democrats' sweeping midterm victory, alongside easing Iran tensions and a Bank of England rate hike, creates a backdrop where political gridlock should support markets despite AI-stock volatility. He notes markets have historically decoupled from political noise provided earnings growth and economic fundamentals remain solid.
Natixis's Jack Janasiewicz and Brian Hess detail October model-portfolio trades—raising equity overweight, adding Treasury duration, and shifting to direct AI exposure via XLK and SOXQ—while arguing narrow AI-driven leadership could broaden if slowing CapEx financing lowers yields.
A sharp selloff in AI-linked tech stocks following the Democratic midterm sweep exposed pre-existing valuation and credit concerns, highlighting AI's outsized concentration across equity, credit and private markets. The piece argues investors should manage this concentration risk through diversification rather than cutting AI exposure outright.
HSBC Asset Management argues resilient corporate profits and policy buffers have offset oil-price and bond-yield shocks, though mega-cap earnings momentum is fading. It also flags emerging-market debt's new resilience and advocates a Total Portfolio Approach to diversification.
