After the sharp sell-off in artificial intelligence-related stocks, investors are concerned about portfolio concentration: the iShares Semiconductor ETF (SOXX) fell 3% last week and more than 10% in October. Technology represents roughly 40% of the S&P 500, while South Korea and Taiwan account for nearly half of the iShares Emerging Markets ETF (EEM), which lost more than 6% in October. JPMorgan Asset Management is constructive on Japan and Europe over the long term, as they could complement U.S. stocks over the next 10 to 15 years; its Japanese ETF has gained more than 17% this year, supported by governance changes, nominal growth and the weak yen. Europe also offers lower valuations than the United States and industrial exposure linked to defense spending, but remains faced with an energy crisis, political risks, potentially rising interest rates and uncertainty over its AI policy.
Source: Read the original article
