Diversification challenge

The equity market concentration these days occurs at 3 different levels: (1) Approximately, 61% of the global equity AUM are invested in the US. (2) 30%-40% of the S&P500 (depending on how you classify Amazon) is invested in the technology sector, and (3) the concentration on the #magnificent7 and the performance attribution of the index are well known. Where do you get diversification these days? According to the study by Bridgewater Associates below, it’s not easy, but you can find certain isolation from US monetary policy and market sentiment in #EM. And the fundamental case is improving: more FX reserves, less external debt and stickier money that understands the local idiosyncrasies are in play as we speak. The rest of developed markets offer little to none benefits in terms of diversifying a portfolio. And yet EM equities are trading close to historical lows to DM ones. What would be the catalyst for this rotation?

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Source:https://www.bridgewater.com/_document/where-can-investors-find-geographic-diversification-today?id=0000018d-f1f5-d216-a3ed-f1f7b0500001