Financial advisers shift allocations strongly into small-caps and emerging markets

A survey of over 200 advisers by Fidante found that more than 60% are bullish on Australian small-cap stocks, 57% on global small caps and 53% on emerging markets for the next six months. By contrast, only about one-third plan to increase exposure to U.S. large caps. The advisers cited high valuations in major U.S. stocks and seek value in under-priced segments. Other areas seeing increased interest include private credit, infrastructure and private-equity allocations. The shift may signal broader portfolio rebalancing amid elevated risk and stretched markets.