Financial advisory firm St. James’s Place (SJP) has released its latest CIO Quarterly Insights report, warning of rising market concentration and political volatility in the US and urging investors, especially in the Middle East, to diversify their portfolios.
US equities under pressure
Authored by Angelina Lai, SJP’s Chief Investment Officer for Asia & Middle East, the July 2025 edition, titled “Red Caps and the US Concentration Conundrum,” highlights that 10 mega-cap stocks now make up over a third of the US market, the highest in 60 years. This, along with policy swings under the Trump administration, is fuelling global uncertainty.
Middle East investor focus
“For investors across the Middle East, navigating global uncertainty requires both perspective and precision,” said Lai. “As international exposure increases, so too does the need for thoughtful diversification and a disciplined, long-term strategy that aligns with regional ambitions and global realities.”
Despite the US being SJP’s largest equity position, the firm remains underweight by 15%, favouring opportunities in Europe, Japan, and Emerging Markets. The report also notes rising geopolitical pressures in the Middle East and Ukraine, along with cautious optimism reflected in recent US consumer sentiment data.
“In times of heightened market uncertainty, it’s more important than ever to stay focused on your long-term goals and ensure your portfolio remains resilient,” Lai added.
St. James’s Place manages over $245 billion in assets and serves more than one million clients globally.
