Portfolio diversification might sound like a chore, but it’s worth the effort in 2026, given how dominant the artificial intelligence trade was last year. Without some smart diversification, your “just fine” investment portfolio from 2025 may be vulnerable in 2026.
“Investors don’t have to think there’s an AI bubble to be concerned about the concentration risk that AI has wrought,” says Morningstar Indexes strategist Dan Lefkovitz. “Concentration … leaves investors holding a market portfolio less diversified than in the past—by stock, sector, and theme.”
