A small number of constituents are increasingly dominating the S&P 500, and history shows that high levels of concentration can lead to larger drawdowns. An allocation to real assets may offer solutions through lower correlations and betas compared to the biggest S&P 500 names, while still participating in broader market gains. For these reasons, investors should consider allocating a portion of their portfolios to real assets, which can help mitigate portfolio concentration risk while enhancing resilience. 

This quarter’s newsletter from Brookfield's Public Securities Group examines these observations, highlighting key themes driving fundamentals and opportunities across different regions and subsectors within their flagship investment strategies.

Views and opinions expressed are subject to change. This content is provided for educational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any product or service of Brookfield Corporation (“Brookfield”) and certain of its affiliates.

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