Masters in Business · Friday, July 24, 2026
Lori Heinel, Global CIO at State Street, emphasizes the importance of a diversified investment portfolio, advising against trying to perfectly time market inflection points. She suggests that while large-cap US growth stocks have dominated, other areas like small-cap, emerging markets, and Europe may offer opportunities.
“Yeah, well, our view is generally to have a diversified portfolio. At the margin, we might favor large cap, or favor Europe, or favor emerging markets at different points in time based on relative value trading, but we do think that it's incredibly difficult to time those inflection points perfectly.”
“And as you noted, coming into this year, you still had a lot of momentum and flows into the things that have done well in the past, including some of those large cap names that you mentioned.”
“So, you know, I'm kind of a traditionalist in that way. I do believe you want to be diversified and have exposures to multiple places.”