Quality Without Borders: Inside the BCGD

U.S. equity valuations are described as stretched and volatility has risen in early 2026, prompting a measurable shift of investor interest toward international markets for diversification. Portfolio managers should consider reducing U.S. concentration risk and evaluating allocations to international/EM equities and currency-hedged strategies to manage volatility and broaden sources of return.

Analysis

U.S. equity valuations are described as stretched and volatility has risen in early 2026, prompting a measurable shift of investor interest toward international markets for diversification. Portfolio managers should consider reducing U.S. concentration risk and evaluating allocations to international/EM equities and currency-hedged strategies to manage volatility and broaden sources of return.