Willem Sels, global chief investment officer at and Premier Wealth, remains overweight in US equities. This is because the US is still offering a strong combination of earnings visibility, artificial intelligence leadership, innovation and corporate quality.

US equities have outperformed other developed markets year-to-date, Sels said, while broader participation from small caps, cyclicals and the Forgotten 493 suggests that the US market is becoming less dependent on the Magnificent 7. (The Magnificent 7 includes tech giants Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia and Tesla while the Forgotten 493 refers to the remaining 493 companies in the S&P 500 stock index.)

“Technology remains a key overweight in our strategy,” Sels said in a note. “The sector continues to lead in semiconductors, software, cloud infrastructure and data-centre investment and is expected to retain a substantial earnings and revenue-growth advantage through 2027.”

“Technology valuations remain elevated, but valuation risk is increasingly concentrated in select industries rather than across the wider sector. This reinforces the importance of selectivity where high multiples require continued exceptional earnings delivery,” he added.

US equities have delivered broad gains in 2026. As of 10 August, the S&P 500 is up 13.3 per cent year-to-date, the Nasdaq 14.5 per cent, the Dow Jones 12.3 per cent, and the Russell 2000 21.6 per cent. The Forgotten 493 gained 15.4 per cent, compared with 4.8 per cent for the Magnificent 7.

Patrick Ho, chief investment officer, North Asia at HSBC Private Bank and Premier Wealth, said US equities have outperformed other developed markets year-to-date, but emerging markets remain ahead, supported by the exceptional gains in South Korea and Taiwan.

This was echoed last week by (FTIS). The firm remains bullish on equities, despite renewed inflation concerns, higher rates and geopolitical risk. FTIS sees more than 20 per cent earnings growth expected for US and global equities over the next 12 months, with 35 per cent growth expected in emerging markets. The firm also sees improving earnings breadth as a sign of the market becoming less dependent on a handful of technology stocks.

“The global macroeconomic environment appears relatively robust, led by the United States and Japan, while the outlook for the euro area has also improved, despite energy-related inflation concerns,” FTIS said in a note. “In addition, recent equity market volatility has reset valuations for technology names and moderated sentiment and positioning indicators that were trending towards exuberance.”

“Our view on US equities shifted somewhat during July to a more style and size-neutral position,” FTIS continued. The S&P 500 remained nearly flat in July, but seven of 11 sectors advanced. Energy gained 12.5 per cent and financials rose 6 per cent, while technology fell -3.5 per cent.

“Technology experienced a sharp internal rotation during July. Systems software gained 17.9 per cent, while semiconductors declined -8.5 per cent and semiconductor equipment fell -32.5 per cent,” Ho said.

“Technology’s forward P/E premium to the S&P 500 has narrowed from 10.7x at the start of 2026 to roughly 4.8x at the time of writing. Valuations nevertheless remain elevated in select industries, particularly semiconductor equipment,” Ho continued. “The earnings outlook remains supportive.”

Consequently, FTIS retains an AI tilt within its portfolios with overweight exposure to the US, Japan and emerging markets, where it sees the most potential for growth. “The AI hardware and memory trade saw some volatility in July as investors took profits, but the underlying fundamentals of AI adoption haven’t changed; meaning, these less-crowded positions make sense to us at lower valuations,” FTIS said. “This is particularly true in emerging markets, where stellar earnings are helping to contain price/earnings ratios.”

A number of wealth managers remain constructive on tech and AI. Adrien Roure, multi-asset portfolio manager at Paris-headquartered  remains neutral on US equities, and positive on emerging markets excluding China, keeping an overweight exposure to technology.

FTIS is less optimistic towards markets with lower exposure to AI and technology, particularly those with sensitivity to energy and commodity prices. Energy price volatility looms large in the minds of governments and central banks in regions with heavy dependence on commodity markets.

Consequently, FTIS remains underweight in euro area equities, despite an improvement in some leading growth indicators, as energy concerns constrain growth and force a more hawkish approach from the European Central Bank. Australian equities remain the firm's least-preferred region due to a mixture of weak domestic growth and unsupportive fiscal policies.