Major global pension funds are reducing their holdings in US equities, citing stretched valuations and high concentration in AI-focused companies like Nvidia, Alphabet, and Microsoft 🔗. Funds including Australian Retirement Trust and La Caisse are now underweight US stocks relative to global benchmarks 🔗.
Key points:
- One-third of surveyed institutions plan to cut US equity exposure over the next 12 months, double last year's level 🔗.
- Over one-third of the S&P 500 consists of large-cap companies tied to the AI investment cycle, creating concentration risk 🔗.
- This signals potential sector rotation away from mega-cap tech, despite Stifel noting AI infrastructure demand remains strong and supply-gated 🔗.
Global pension funds cut US equity holdings on valuation worries
STREETINSIDER.COMOct 5, 9:30 AM UTC
Stifel sees AI supply constraints ahead of Q3 tech earnings
STREETINSIDER.COMOct 5, 10:35 AM UTC
0