Rebalance your portfolio with Megatrends to increase growth opportunities.

Anything is possible. Who would have thought that Donald Trump, the man who sparked a new global trade war this year, would become the president who caused US stocks to surge the fastest in history?

The S&P 500 index has recently surged, breaking through 6,600 points, setting a new all-time high! It's up 36% within five months of its low point following the announcement of Liberation Day on April 2nd, setting more than 10 new records in total.

Meanwhile, the US tech stock index "Nasdaq" also set a new all-time high, closing positive for the sixth consecutive month, the longest such streak in 10 years, with Nasdaq Futures reaching 24,000 points for the first time in history.

The US stock market is entering a bull market with the global trend of AI, with technology stocks expected to continue driving US economic growth. This goes against the trend of some companies that are still worried about the US economy being vulnerable to the point of risking a recession from the impact of the Reciprocal Tariff, which makes goods more expensive. UBS warns that the "US economy" has a 93% chance of facing a recession.

Investors are eagerly awaiting signals from the US Federal Reserve (Fed) regarding both interest rate direction and the future economic outlook at every meeting. In its latest meeting on September 18th, the Monetary Policy Committee voted to lower interest rates for the first time by 0.25 percentage points, bringing them down to 4.00%-4.25%, in line with market expectations. They also signaled a faster pace of rate cuts, with two more cuts planned for the remainder of this year and one next year. The downward interest rate cycle has begun and will significantly reduce financing costs, particularly on borrowing rates, a positive factor for companies' future performance.

Meanwhile, the swirling buzz of "When will the US stock market bubble burst?" continues to linger, particularly the "Magnificent Seven" stocks, a group of seven angels whose stocks have risen sharply and are still reaching alarming new highs. This group, which has significant weight in the market index and has driven up market valuations to appear overpriced, is considered a significant valuation over the historical average.

Investing during this period should focus on comparing the risks and returns of the stocks you are investing in to see how they compare.

We shouldn't get too carried away with investing because "In the world of investing, it's not the smartest who survives, but the most adaptable," warned George Soros, a world-renowned investor.

Moving Forward with Rebalance to Cope with a Changing World

This current investment strategy aims to achieve stable long-term portfolio growth. It's time to rebalance your investment portfolio. Regardless of the rising global stock market, gold prices are rising, and secondary market bond prices are also rising, how are the various assets you've invested in worthwhile compared to the long-term investment risks?

Rebalancing reduces risk and keeps your investments on track. Regularly adjusting your portfolio back to your target allocation ensures that your portfolio doesn't deviate too much during periods of market volatility.

For those who manage Core & Satellite portfolios, I usually recommend investing in 80% and 20% of their portfolios, respectively. This will allow you to easily adjust your portfolio, as you'll see which assets in your primary and secondary portfolios have increased in value beyond their proportions. Regularly adjust your portfolio to return to the target proportions. This will reduce risk and keep your investment direction on track. Importantly, it will ensure that your portfolio doesn't deviate excessively during periods of market volatility.

For the Core portfolio adjustment, this is usually the main portfolio that focuses on investing in assets with low risk and providing stable and continuous returns. Most of them are invested in safe assets such as US bonds or deposit interest, which will enter a mode of not giving very high returns. Most recently, US bond yields have dropped below 4% for the first time in 6 months, meaning that bond prices have increased.

The core portfolio's diversified portfolio primarily focuses on the US stock market or developed countries, with investments in individual country indices aimed at growing returns in line with the market. If you see significant profits today that push your portfolio below your target, you can sell some of your gains first. U.S. stocks are currently experiencing a valuation boost due to the concentration of rising tech stocks, making them appear expensive overall. However, this doesn't necessarily mean they can't generate returns. Therefore, some American stocks should be retained in your portfolio to ensure long-term economic growth.

Adjusting your satellite portfolio or secondary portfolio to support investment needs during a bull market under an acceptable level of high risk. Currently, stocks in many countries have risen significantly, whether they are emerging stock markets or rising stars like China, Hong Kong, India, and Vietnam, which have surged to new highs. You can seize this opportunity to sell for profit in an expensive market and move to invest in stocks with megatrend themes or stocks that will benefit from global megatrends that will grow in the next 10 years.

As the future of the global economy continues to be driven primarily by AI, companies involved in AI trends will receive premium valuations based on the expectation of AI or new technological innovations that will never end.

Although big tech stocks are currently seen as rising beyond their fundamentals, most analysts still believe it's not a true bubble. Analysts from Citi believe the rise in tech stocks in the AI ​​era isn't due to a bubble, but rather to structural factors such as leverage, return on equity (ROE), and profit growth that are driving stock prices upwards.

Goldman Sachs Research has compared that in 2000 the Nasdaq market surged hundreds of times and the P/E was as high as 200 times. But now, even big stocks like Nvidia and Microsoft, although the P/E is high, it is not as high as at the beginning of the dot-com era and most of them have normalized earnings, making the rise of these stocks more credible than during the dot-com crisis.

Overall, big tech stocks aren't clearly in a bubble, but there's a mix of good and bad news. Therefore, caution remains when investing in big tech, especially AI stocks or growth stocks that are rising faster than their profit growth.

The AI ​​trend is changing the economic structure.

I see “AI” as more than just a temporary trend, but as a General Purpose Technology (GPT), similar to electricity, the internet, or smartphones that are transforming the entire economic system. AI is poised to transform the economic structure over the next 10 years. Let’s take a look.

In the short term, over the next 1-2 years (2025-2026), the AI ​​trend will remain hot due to the continuous increase in demand for data centers, chips, cloud, and AI services. In the past, we have seen large companies on the manufacturing side, such as Microsoft, Google, Amazon, Meta, etc. These companies still have to invest a high budget to develop AI infrastructure to increase their ability to provide services to various business sectors.

In the medium term, 3-5 years (2027-2030), commercial use will expand. The current Generative AI will reach various business sectors: healthcare, finance, logistics, automotive, and manufacturing. These sectors will turn to AI to reduce labor costs, which will positively impact the performance of companies with improved profits. News is currently showing that large companies are beginning to lay off workers. Various business sectors will benefit from the use of AI. We will see the "S-curve" of AI begin to peak as the AI ​​user market expands.

In the long term, 5–10 years (after 2030), AI will be embedded in every industry. It will become the “fundamental structure of the economy.” This is the growth cycle of AI that creates long-term economic benefits.

Seize the opportunity to invest in megatrend stocks

Let me reiterate that the key concept of investing in industry sector stocks is that you should invest in the direction the world is heading. Therefore, today's "megatrend" stocks are the ones that will benefit from major global changes over the long term.

I'll take you to see the main megatrend themes that are ranked highly for investment and look at the movement of stocks in this group over the past 2-3 years (2023-2025).

Starting with the AI ​​and digital technology sector, which is the upstream AI producer and service provider, this group is led by NVIDIA, Microsoft, Alphabet, ASML, etc.

and the Semiconductors & Infrastructure group, which is also an upstream producer of electronic components such as various chips, led by TSMC, AMD, Broadcom stocks.

If you recall, this group of stocks helped the market recover from the beginning of 2023, dragging on to mid-2025, led by NVIDIA stocks, whose prices surged more than 500%. AMD and Broadcom also saw strong increases, but not as much as NVIDIA. ASML's price has increased by around 100–150% in 2 years.

The next megatrend in the clean energy sector is Tesla, BYD, and NextEra Energy, especially electric vehicle (EV) giant Tesla, whose share price has fluctuated in the short term and has not yet returned to a new high. This suggests that there is still upside for investment at this time.

The Healthcare & Biotech sector remains resilient, even after the COVID-19 pandemic. Popular stocks in this sector remain popular. Trending stocks like Eli Lilly have surged over 200% from early 2023 to mid-2025. Other stocks related to chronic disease medications, such as Novo Nordisk, are also trending, particularly weight-loss drugs that are still expanding well. This group also includes businesses related to aging societies, such as medical companies, health insurance, and elderly care centers, all of which are megatrends for the future.

There are also interesting stocks in the e-commerce & Fintech sector, including Amazon, Sea Group, Shopify, PayPal, and the Cybersecurity sector, which are starting to recover steadily. Meanwhile, the Digital Economy is led by Amazon, which has rebounded +100% from its 2022 low.

For investors looking to diversify their investments across megatrend themes during this period, I recommend focusing on businesses that are "AI users," those in the midstream and downstream sectors. These businesses will benefit from AI services, which can reduce operating costs and positively impact profits. Furthermore, stock prices haven't risen as sharply or reached new highs like upstream Big Tech stocks.

Invest in DCA and give it time to grow.

Diversifying your investments in megatrend stocks during a bull market is another way to reduce risk. This is through cost averaging, or DCA, because no one can always predict the market's price dips. Sometimes, you might buy at the peak. Therefore, dividing your investments periodically will help you achieve a better average cost than buying in one go.

When you don't let your portfolio fall short of its target and use this opportunity to increase your investment in good assets, you're in for a real long-term opportunity.

The world of investing is not a short-term race, but a long-term journey. If you have the discipline to stick to your investment plan and maintain a strong mindset, you can weather any crisis. Don't just try to beat the market; stay in it long enough to allow the returns to grow.

Warren Buffett once said a comparison to long-term investing: “Someone's sitting in the shade today because someone planted a tree a long time ago.” This means that investing takes time and cannot be expected to yield quick results. Investors who are patient and invest over the long term will reap the rewards that grow like a growing tree.

But the most important thing about good investing is investing in something you understand, with a level of risk you can accept, so you can sleep soundly. Afterward, allow time for growth, and you'll be on your way to achieving your goals and becoming a successful investor.