Bloomberg Surveillance · Monday, June 29, 2026
Analysts are highlighting a growing concentration of risk in AI investments across various asset classes, including equities and emerging markets. The significant spending by a few hyperscalers is funding a large portion of the market, leading to concerns about how to hedge this pervasive AI exposure.
“So there's something of a concentrated correlation. Now on a bull we have an a thousand price target on the SMP. But we have to be cognizant of the risks, and the risks are that you have more or less twenty percent of the S and P driving the earnings of the rest of the market funded by six companies of the S and P, and you have a bond market which is now reflecting AI as well because the hyperscalers are funding themselves with debt to do this.”
“And so when you put all together in a what we do a diversified portfolio, you're starting to look at concentrated risk in AI across all your asset classes, and so as an asset allocator, that's what you really have to be focused on, like how do you how do you hedge that risk?”