Core Insights - Portfolio diversification is essential in 2026 due to the concentration risk from the dominance of artificial intelligence investments in 2025 [1][2] Group 1: Importance of Diversification - The concentration risk from AI investments has made market portfolios less diversified across stocks, sectors, and themes [2] - Without smart diversification, portfolios that performed adequately in 2025 may become vulnerable in 2026 [1] Group 2: Rebalancing Strategies - Rebalancing is necessary to restore the original diversification levels; portfolios may now be overweight in US stocks compared to bonds [3] - A portfolio that initially had a 60% stock and 40% bond allocation could now exceed 80% in stocks due to lack of rebalancing [3] Group 3: International Exposure - Many portfolios may have lower exposure to international stocks than originally targeted, despite international stocks performing well in 2025 [4][7] - The long-term underperformance of international stocks compared to US stocks suggests potential for further gains [7] Group 4: Bond Allocation - Financial professionals recommend including bonds for diversification, especially for investors over 50 who should consider de-risking their portfolios [5][6] - A suggested bond allocation for retirement savers is 5% for those with 35-40 years until retirement, increasing to 20% as retirement approaches [5]

If you’re more worried about your retirement money than your death, you’re in good company. According to a study from the Allianz Center for the Future of Retirement, nearly two in three Americans (64%) are more worried about going broke in retirement than dying. If you’re wondering how President Donald Trump’s tariffs and trade policy impact retirement portfolios, GOBankingRates talked to some finance experts for their perspectives and advice. Seeing the Bigger Picture “Overall, there are both negativ ...