One year ago, stock investors were still enamored with the artificial intelligence trade. Rallying mega-cap stocks—several of which qualified as AI plays—were driving the US stock market to new highs.
Fast forward to today. Investors have grown concerned about how much money companies are spending on AI and what toll AI may take on various industries. Those worries have led to the rise of the “anything but AI” trade and to a rotation in the US stock market—and to in-the-red returns for most mega-cap names so far in 2026.
In January, we suggested five asset classes for investors to consider if they wanted to diversify away from the market’s mega-cap stocks and the AI trade. Here’s how those assets are doing so far in 2026.
This post originally appeared at Morningstar.