Party over? If overweight, pare exposure to US technology companies

Allocation to it should not exceed 25% of your total exposure to country's market

Seven of the largest US technology companies — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — have added $4.5 trillion to their market capitalisation since the start of this year. The Nasdaq-100 is up 44 per cent, the NYSE FANG+ index has gained 81 per cent, while the broader S&P 500 index is up only about 20 per cent year-to-date (YTD).

Narrow, AI-driven rally

The rally in US stocks has been driven primarily by the seven names mentioned above. “If you exclude them, the US market hasn’t moved much, which is why there is a large divergence between the