Yu argues that investors should broaden their exposure rather than crowd into the same narrow sectors that have defined markets in recent years. In his view, the world has moved on from a period when US technology stocks were effectively the only source of growth.
AllianceBernstein (AB) maintains a positive view on emerging markets (EM) and Asia, even as investors face war-driven volatility, higher energy prices and uncertainty over inflation and interest rates.
Many investors have been tempted to sell and hold more cash, but he warns that doing so could hurt long-term returns. “It’s more important than ever to stay invested and diversified,” says Nelson Yu, AB’s head of equities.
