Neuberger Berman's Holly Newman Kroft: Market is showing us it's time to rebalance portfolio

Market Overview - The S&P 500 is experiencing its fourth consecutive down day, with consumer discretionary and tech sectors leading the losses [1][3] - Since the beginning of 2023, the S&P 500 has increased by over 80%, but current volatility highlights the importance of locking in gains [4] Investment Strategy - It is advised to rebalance portfolios by trimming exposure to large-cap tech stocks to align with investment goals and risk tolerance [2][5] - The current market volatility presents opportunities for investors to secure liquidity for future investments [5][6] Small and Mid-Cap Stocks - Small and mid-cap stocks are viewed positively, especially as the small-cap index recently reached an all-time high [7] - Caution is advised as the small-cap space includes both earners and non-earners, with non-earners benefiting from AI trends [8][9] Global Market Insights - Global equities have outperformed, with 50% of S&P revenues coming from international markets, indicating potential opportunities in overlooked international stocks [10][11] - The AI revolution is expected to have global implications, and identifying beneficiaries of this trend is crucial for investment success [12] Investor Sentiment - Investor sentiment is shifting, with clients more receptive to trimming positions during market downturns as they see paper gains diminish [13]