Casting a wider net: Can investors branch out when so much is priced in?
What do March Madness and the Oscars have in common? Both are beloved rites of spring that at times have cast a wider net to enhance their appeal and keep up with evolving trends and interests.
Breadth of opportunity is a prominent theme in global financial markets, too, but with more at stake than a busted bracket in the office betting pool or a snubbed supporting actor on Hollywood Boulevard. Building long-term portfolios designed to maximize return potential while effectively managing risk has always come with challenges, and never more so than during periods of sweeping economic, political and technological change.
Yet despite today’s increased volatility, markets remain efficient overall, with expected outcomes largely priced in — evidenced by tight credit spreads, a crowded artificial intelligence (AI) trade and full equity valuations, among other indicators. This complicates the quest for relative value and durable upside, leaving some investors hard pressed to identify the next asset classes or sectors best suited to take on the role of portfolio diversifier, income generator or return maximizer.
Our Global Investment Committee explores these and other insights through our “Five portfolio construction themes” discussion, updated heat map and best ideas across asset classes. We’re pleased to share how we’re casting our own wider net as we head into the second quarter of 2026 and beyond.
