Just_Super/E+ via Getty Images Artificial intelligence has emerged as the dominant force shaping returns across global financial markets, according to Apollo Global Management’s chief economist, Torsten Slok. He notes that a single theme—AI—is increasingly influencing performance across equities, fixed income, and private capital, raising concerns about concentration risk for investors. In public ...
Just_Super/E+ via Getty Images Artificial intelligence has emerged as the dominant force shaping returns across global financial markets, according to Apollo Global Management’s chief economist, Torsten Slok. He notes that a single theme—AI—is increasingly influencing performance across equities, fixed income, and private capital, raising concerns about concentration risk for investors. In public markets, the outsized weight of large technology companies in the S&P 500 has amplified AI’s impact on equity returns. As these firms continue to lead innovation and earnings growth tied to AI, their influence on index performance has grown disproportionately. Meanwhile, in credit markets, major technology hyperscalers are issuing significant amounts of debt to fund AI-related infrastructure, further extending the theme’s reach into bond returns. The trend is even more pronounced in private markets, where AI-focused ventures now account for roughly 60% of venture capital investment. This level of concentration underscores how deeply embedded the technology has become across the investment landscape. “The bottom line is that there is one factor driving returns in portfolios, namely AI,” Slok said. Slok also cautions that such dependence on a single driver may leave portfolios vulnerable. He advises investors to diversify intentionally by allocating capital to sectors, regions, and strategies less directly tied to AI fundamentals. Market Tracking ETFs: ( DIA ), ( DDM ), ( DOG ), ( DXD ), ( SDOW ), ( SPY ), ( VOO ), ( IVV ), ( RSP ), ( SSO ), ( UPRO ), ( SH ), ( SDS ), ( SPXU ), ( QQQ ), ( QQQM ), ( TQQQ ), ( QID ), and ( SQQQ ). Artificial Intelligence ETFs: ( AIQ ), ( BOTZ ), ( DTEC ), ( WTAI ), ( XAIX ), ( WISE ), ( GINN ), ( ROBT ), ( TECB ), ( XT ), ( THNQ ), and ( CHAT ). More on markets Cantor Fitzgerald sees the current market pullback as a possible opportunity BNP Paribas raises 2026 inflation outlook as it signals a new 3% era Wells Fargo sees the U.S. economy weathe...