One Factor Driving All Returns | March 25, 2026 | Torsten Slok's The Daily Spark | Apollo Global

Apollo: AI is driving returns in equity markets because of the growing size of tech in the S&P 500 index, and this is a problem for both institutional and individual investors, see chart.

With hyperscalers issuing more debt, AI is increasingly also driving returns in bond markets.

And AI currently makes up 60% of investments in venture capital.

The bottom line is that there is one factor driving returns in portfolios, namely AI.

To avoid being overexposed to just one factor, asset allocation should deliberately increase exposure to sectors, regions and strategies whose fundamentals are less directly tied to AI.