Growth, Tech Concentration and Why Europe May Matter More as a Diversifier

Scott Galloway argues that growth remains one of the most important forces separating stronger economies from weaker ones.
His view is that the U.S. still is not growing fast enough, but remains in a relatively better position than countries such as the UK, where economic growth has been much weaker.
At the same time, Katie highlights another issue investors increasingly cannot ignore: almost everyone is already a tech investor.
Even investors using broad index funds or pensions have significant exposure to technology because of how heavily large U.S. indexes are concentrated in mega-cap tech.
That is changing how some institutional investors think about diversification.
Rather than allocating strictly by country, some are separating portfolios into technology exposure and non-tech exposure.
From that perspective, the UK and Europe can become more attractive.
They may not offer the same growth profile as U.S. technology, but they provide exposure to financials, industrials, energy, healthcare and other sectors that can diversify portfolios heavily concentrated in American tech.
The broader shift is from geographic diversification toward sector and factor diversification.