Summit 2026: Navigating Investing in Today's Markets with Mike Smith
Mike Smith, head of Allspring’s Growth Equity team, emphasizes a strategic shift away from the top-heavy dominance of AI-driven tech stocks by diversifying investments and positioning for the next wave of AI opportunities.
Transcript
Cameron Pickoski: We're here at our National Sales Summit in Fort Lauderdale today, where the theme is “Charting the Course.” So, with that in mind, Mike, we wanted to talk a little bit about how you and your team are navigating investing in today's market. And, with that said, you're head of our Growth Equity team at a time when the growth market is incredibly top-heavy. So, can you tell us a little bit about how you're managing for that and positioning for the future?
Mike Smith: For sure. So, the growth market is top-heavy—the heaviest it's been in my career. Everybody knows that. I think the part that's not getting talked about enough is while the weight of the seven largest companies has doubled, the diversification has been cut, you know, in more than half. 25 years ago, the seven largest companies included a bank, an oil company, a retailer. Today, it's seven tech stocks—seven stocks tied to the AI trade. So, the way we're positioning is we're bringing our weight in those seven stocks down and we're taking our weight and everything else up. So, we're doing the opposite. And I think that tilt is going to set us up well for what's to come. That's number one. Number two, I think you always have to ask in growth, “What's next?” And so, the big opportunities are going to be: Where does the AI wave go next? Positioning for that, I think, is the other way we're going to conquer what's to come.
Key takeaways
- The growth market is increasingly top-heavy, dominated by seven AI-driven tech stocks, reducing diversification significantly.
- Mike's team is reducing their exposure to these seven stocks and increasing investments in other areas to help remain more balanced.
- Looking ahead, the Growth Equity team is focusing on identifying and positioning for the next big opportunities in the evolving AI landscape.
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