St. James’s Place, the FTSE-listed global financial advisory firm managing $245 billion in assets, has released its July 2025 CIO Quarterly Insights report, warning investors across the Middle East to maintain discipline and diversify as global market risks intensify.
Authored by Angelina Lai, Chief Investment Officer for Asia & Middle East, the report — titled “Red Caps and the US Concentration Conundrum” — examines rising volatility in US markets, where political shifts, tariff changes, and social media-driven announcements from the Trump administration have amplified uncertainty.
Lai cautioned that two-thirds of global equities are now concentrated in the US, with just 10 mega-cap stocks accounting for more than a third of the US index — the highest level in six decades. “For investors across the Middle East, navigating global uncertainty requires both perspective and precision,” Lai said. “When valuations are high and markets are concentrated, it’s essential to avoid overexposure and stick to a long-term, disciplined strategy.”
While the US remains SJP’s largest single equity position, the firm is currently underweight by 15% in its core portfolios compared to the market weight. The report points to more attractive opportunities in Europe, Japan, and Emerging Markets, particularly in undervalued regions of Asia.
The insights also address broader geopolitical pressures, including ongoing tensions in the Middle East and the war in Ukraine, both of which threaten supply chains and drive fluctuations in oil prices. Despite the uncertainty, US consumer sentiment has shown a modest rebound — the first improvement in six months — suggesting cautious optimism among households.
“In times like these, we don’t chase headlines,” Lai added. “We focus on fundamentals, tailoring asset allocation to each client’s objectives and risk tolerance. Valuations alone aren’t enough to determine quality — something that appears cheap can still be a poor investment.”
SJP’s analysis emphasises the need for Middle East investors to balance growing regional opportunities with prudent exposure to global markets, ensuring portfolios remain resilient against concentrated risks.
Founded in the UK in 1991 and listed on the London Stock Exchange since 1997, St. James’s Place serves nearly one million clients worldwide, with offices in the UK, Hong Kong, Singapore, and the UAE. Since expanding into Asia in 2014, it has become one of the region’s largest wealth managers for both local and expatriate communities.
