Yes, valuations in some major tech names have climbed above their historical averages. The “Magnificent Seven” — Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla — now make up around 34% of the S&P 500, up from just 12.3% in 2015.

That’s a remarkable rise — but also a reflection of how dominant technology and AI-related businesses have become. The surge in index investing has further concentrated flows into these companies, often without regard to their underlying fundamentals.
 

If your KiwiSaver or investment portfolio is heavily concentrated in U.S. tech stocks or thematic funds, it may be time to review your allocations. Concentration can magnify both gains and downturns — and now could be a good time to make sure your portfolio still fits your risk profile and goals.

However, if you’re invested in a broadly diversified, fundamentals-based portfolio, you’re already ahead. These portfolios tend to have measured exposure to growth sectors while balancing risk through diversification — a strategy that’s stood the test of time.
 

We’re excited to highlight a new investment option now available in our portfolios — the All Weather Portfolio. This strategy is designed for investors who want steady, lower-risk growth and resilience across market cycles.

The All Weather Portfolio provides a well-rounded blend of assets that can perform in different economic environments — from growth booms to inflationary periods. For investors seeking stability without sacrificing opportunity, it’s a compelling alternative.
 

Market returns are never smooth — but they reward patience. History shows that reacting to short-term headlines often leads to missed opportunities. Even brief periods out of the market can have a massive impact on long-term returns. As the chart below illustrates, some of the best days in markets often follow the worst.

Understanding your risk profile is key to making confident investment decisions. It’s based on three factors:

If you’re in the right profile for your situation, ignore the noise. Stay focused on your long-term plan, not the daily headlines.
 

Every market cycle has its own story — from the dotcom era to crypto and now AI. The common thread? Diversification, discipline, and advice make the difference between short-term speculation and long-term success.

Whether you’re comfortable with growth exposure or prefer the balance of the All Weather Portfolio, the key is ensuring your investments align with your goals and peace of mind.

Markets will rise, fall, and rise again. The best strategy isn’t to fear change — it’s to be ready for it.
 

If recent headlines have you second-guessing your KiwiSaver or investment plan, talk to your adviser. We’ve seen a few cycles before — and we can help ensure your portfolio stays aligned with what truly matters: your long-term success.

Disclaimer: This newsletter is meant to be informative and engaging, hopefully not a cure for insomnia.  Please don't take this as personalised financial advice.  Discuss your situation with an Advisor.  This is where I need to say past returns are no guarantee of future returns.