Fear of missing out may be one of the biggest risks facing investors as they position portfolios for the second half of 2026.
“Don't you know that the fear of missing out is something to just try and temper within yourself,” said Mel Casey, Senior Portfolio Manager at FBB Capital Partners, during a recent interview with AInvest's Capital & Power. Instead, investors should focus on “earnings growth, robust businesses,” he said.
Casey's warning comes as the artificial intelligence boom continues to reshape financial markets. Reuters reported that the technology sector now accounts for more than 39% of the S&P 500's market capitalization, the highest concentration on record and above levels reached during the dot-com era. While today's rally is supported by earnings growth rather than speculation alone, it appears that market leadership has become increasingly concentrated among a small group of AI-driven companies.
“We can't necessarily call the top on certain things like AI or the broader stock market,” Casey said.
At the same time, Wall Street's commitment to AI continues to grow. Alphabet, Amazon, Meta and Microsoft are expected to invest roughly $650 billion in AI-related infrastructure in 2026, up sharply from an estimated $410 billion in 2025, according to an analysis by Bridgewater Associates.
Against that backdrop, Casey argues investors should resist the temptation to concentrate portfolios solely in the companies making the headlines. “We're trying to make sure people are adequately diversified and positioned to be able to withstand a little bit of volatility, but not actually exit those markets.”
Rather than abandoning AI, Casey believes investors should broaden their exposure to the ecosystem supporting it. “Everyone's focusing on the hyperscalers,” he said. “But look at the value chain.” He pointed to businesses supporting the growth of data centers and computing infrastructure, arguing that investors should look beyond the most obvious winners. “If AI is gonna be with us, and this is gonna be the main driver of economic growth, take a look around the picks and shovels beyond just the major companies that everyone talks about.”
One company Casey highlighted is ASML, the Dutch semiconductor-equipment manufacturer whose lithography systems are critical to producing advanced chips.
“They're one of the very few companies in the world that make the lithography machines that are used to produce these sophisticated chips,” Casey said. “I would argue that they have a very, very robust moat around their business.”
Casey also highlighted Vertiv, which provides cooling and power infrastructure for data centers. Veritiv describes itself as a global leader in critical digital infrastructure. The theme has gained increasing attention as AI expansion drives demand for power, cooling and physical infrastructure alongside semiconductors. Companies throughout the AI infrastructure supply chain are benefiting from the global buildout of data centers and computing capacity.
Beyond AI, Casey sees opportunities in areas many investors have overlooked during years of U.S. technology dominance.
“The U.S. is not the only game in town,” he said. “International overseas stocks have actually done better than U.S. in recent times. And so being globally diversified is important.”
He also believes investors should reconsider the role of bonds after years of disappointment. While some strategists have questioned whether the traditional 60/40 portfolio remains effective, Casey argues today's higher-rate environment creates a stronger foundation for fixed income than investors experienced during much of the post-financial-crisis period.
“I think the sixty forty approach has been maybe unfairly maligned,” Casey said.
For Casey, the answer is not abandoning diversification but embracing it. Investors can still participate in one of the biggest technological shifts in decades, he argues, without becoming overly dependent on a handful of market leaders. And, as the second half of 2026 begins, that distinction may matter more than ever.