Embrace Diverse Growth Beyond Tech

Diversification strategies should focus on U.S. mid-caps, which are expected to achieve earnings growth comparable to the S&P 500 at lower valuations of about 15 times earnings, benefiting from potential lower interest rates due to increased leverage. There's also a need to explore 'ex-tech compounders,' companies from various industries demonstrating strong compound growth characteristics, high margins, and stable earnings, especially as their valuations have declined amid rising interest rates. Geographically, opportunities exist outside the U.S., particularly in Europe, where undervalued companies like banks are showing signs of growth through cash flow generation, dividends, and buybacks. Emphasizing these diverse sectors and regions can enhance a robust investment portfolio.