Concentration in US equities raises questions for 2025 investment strategies

The phrase 'The Death of the Cult of Equities,' first popularised in 1979, has resurfaced in recent years, coinciding with robust performance in developed market equities. Since the Global Financial Crisis, these markets have delivered returns exceeding long-term averages, with the MSCI World Index achieving approximately 12% per annum. However, this growth has become increasingly concentrated, particularly within the US market, which now constitutes 74% of the MSCI World Index—significantly above its long-term average of 57%. Notably, a select group of large-cap stocks, referred to as the "Magnificent...