The era of diversification has begun, according to Goldman Sachs Global Strategy boss Peter Oppenheimer.
The case for a return to a more diversified approach to investment reflected two factors:
First, valuation spreads between the ‘winners’ and ‘losers’ had reached record highs. This was true both in the equity market and in the value of the USD relative to other currencies.
Second, equities had become unusually concentrated as an asset class as a result of the S&P 500, the technology sector and stock concentration (at least in the US) all reaching record highs
