Milford Asset Management warns global equity concentration heightens investor risk
SPY•Milford Asset Management warned that global shares’ 13.4% gain through August has increased exposure to a rally influenced by AI expectations. The MSCI World Index’s 10 largest stocks made up 26.6% at August-end, while US companies accounted for 72.1%.
1. Concentration risks rise
Milford Asset Management said persistent equity gains risk breeding complacency about unresolved market risks. Its analysis favored diversification across sectors and regions rather than necessarily reducing equity holdings, and warned that rising expectations leave less room for disappointment.
