Rethinking the ‘Buy America’ Mantra in 2026
Remember when “Buy America” was the unofficial slogan for global investors? U.S. stocks, powered by innovation and massive earnings, seemed unstoppable. Fast forward to now, and we’re hearing a new phrase floating around: “Bye America.” Not a full goodbye, mind you—just a nudge to look beyond the familiar. The concentration in a handful of AI-driven names has reached levels that make even seasoned pros a bit uneasy. When a few companies account for so much of the market’s gains, any stumble can ripple widely.
In my view, this isn’t the end of U.S. leadership in tech. Far from it. But it does signal a healthy broadening out. Markets rarely move in straight lines, and after years of narrow leadership, spreading risk feels prudent. The question is how to do it without overcomplicating things or chasing fads.
One approach that’s gaining traction involves three straightforward trades. These aren’t exotic derivatives or leveraged bets—they’re practical adjustments anyone with a brokerage account can consider. Let’s dive into each one.
Trade One: Diversify Within the U.S. Market Itself
The simplest place to start is right at home. Instead of loading up on market-cap weighted indexes where a few giants call the shots, consider an equally-weighted version of the S&P 500. This gives every company in the index the same say, regardless of size.
Why does this matter now? Because the traditional cap-weighted approach has become heavily tilted toward technology and AI-related plays. An equal-weight tracker naturally pulls in more exposure to industrials, consumer goods, financials, and other sectors that have been quieter lately. It’s a low-cost, efficient way to reduce concentration risk without abandoning U.S. equities altogether.
I’ve seen this work in past rotations. When tech cools, other areas often pick up the slack. Plus, it’s passive—no need to pick individual winners. Just set it and let the rebalancing do its job. Of course, it won’t outperform in a raging bull market for mega-caps, but that’s not the goal here. The goal is balance.
- Reduces over-reliance on a handful of names
- Increases sector breadth automatically
- Cheap and easy to implement via ETFs
- Historically performs better during broadening rallies
It’s almost too straightforward, but sometimes the best ideas are the simplest ones.
Trade Two: Look Beyond U.S. Borders Entirely
Once you’ve tweaked your U.S. allocation, the next logical step is going global. This doesn’t mean dumping everything American—far from it. It means building a more balanced worldwide portfolio. Europe, parts of Asia, and select emerging markets are showing signs of life, especially as monetary policies diverge.
Central banks aren’t moving in lockstep anymore. The U.S. might ease further, but others—like the Bank of England—could cut more aggressively. The ECB? Probably nearing the end of its cutting cycle before things stabilize or even reverse. This “two-speed” dynamic creates opportunities for currency plays and regional outperformance.
Defensive sectors like healthcare hold appeal in uncertain times. Swiss stocks offer stability and quality. European cyclical companies could benefit if growth surprises to the upside. And Asia, particularly certain emerging economies, continues to show structural strength despite headline noise.
Investors can diversify with defensive healthcare, Swiss equities, Europe’s cyclicals, and Asia-led emerging market strength.
— Market outlook insights
Putting this into practice might involve broad international ETFs or targeted regional funds. The key is moderation—don’t swing wildly from 100% U.S. to zero. A gradual shift toward a more global mix often smooths returns over time.
What I find interesting is how this shift echoes historical patterns. Periods of U.S. dominance eventually give way to catch-up rallies elsewhere. We’re possibly at the early stages of one now.
Trade Three: Add Defensive and Safe-Haven Elements
Finally, layer in assets that tend to hold up when uncertainty rises. Consumer staples companies—think everyday essentials like household products—are classic defensives. They boast consistent demand, strong pricing power, and deep competitive advantages. These businesses have weathered recessions, pandemics, and market panics before.
Names in this space often feature subscription-like revenue streams and management teams that have “seen it all.” During tough periods, they tend to outperform because people don’t stop buying toothpaste or cleaning supplies.
Then there’s gold. Often dismissed as a relic, it keeps finding new relevance. Central banks continue stacking it up, geopolitical tensions linger, and tariff uncertainties add another layer of appeal. Gold isn’t about chasing quick gains—it’s insurance against tail risks.
- Maintain a core holding in quality staples for stability
- Consider gold as a hedge, especially with policy divergence
- Monitor central bank activity and macro headlines for timing
- Avoid over-allocating—defensives shine in context
In conversations with advisors lately, I’ve noticed more interest in these areas. It’s not fear-driven; it’s realism. Portfolios heavy in growth tech can deliver amazing returns, but they also amplify drawdowns when sentiment turns.
Why This Moment Feels Different
Sure, we’ve had tech pullbacks before. But 2026 brings unique ingredients: massive AI investment cycles, questions about monetization timelines, evolving trade policies, and divergent central bank paths. Add in renewed tariff talk, and the case for diversification strengthens.
Perhaps the most overlooked aspect is psychological. When everyone piles into the same trade, the exit can get crowded fast. Spreading bets across geographies, sectors, and asset types reduces that vulnerability.
Does this mean abandoning innovation? Absolutely not. U.S. tech remains a powerhouse. The shift is about balance—keeping exposure while opening doors to other opportunities.
Putting It All Together: A Practical Roadmap
Start small. Review your current allocation. If U.S. large-cap growth dominates, consider trimming slightly and redirecting to an equal-weight domestic fund. Next, add international exposure—maybe 10-20% initially in broad global or targeted regional vehicles. Finally, allocate a modest portion to defensives and gold.
Rebalance periodically, but don’t overtrade. Markets reward patience. And remember: diversification isn’t about avoiding losses entirely—it’s about sleeping better at night.
I’ve always believed the best portfolios feel a little uncomfortable at first. If everything looks perfect, you’re probably too concentrated. Right now, branching out beyond the U.S. tech story might feel counterintuitive. But that’s often when the smartest moves happen.
As we move deeper into the year, keep an eye on earnings breadth, policy signals, and sentiment shifts. The three trades outlined—domestic reweighting, global expansion, and defensive layering—offer a solid framework. Adapt them to your risk tolerance, time horizon, and goals.
The era of endless “Buy America” euphoria may be pausing. Hello to a more nuanced, diversified approach. In investing, flexibility often beats rigid conviction.
