S&P 500’s record highs mask a growing concentration risk, with just a handful of tech stocks driving most of its latest rally. As a result, many investors who believe they are diversified are effectively making a concentrated bet on mega-cap technology companies.
Steve Neamtz, President of Yorkville America Equities, managing the Trump Media & Technology Group‘s (NASDAQ:DJT) Truth Social Funds, told Benzinga in an emailed statement that despite the benchmark index reaching record highs, over 300 of its stocks are considerably below their all-time highs, indicating untapped opportunities.
He compared this situation to an aircraft that appears to be cruising smoothly at 35,000 feet, while three out of its four engine temperature gauges are overheating.
“The altitude reading is accurate, but the situation is not as comfortable as it might appear from the cabin. That is the S&P 500 right now, and the underlying picture is worth further examination,” said the asset manager with over three decades of experience.
Neamtz also identified three key areas of American growth in 2026: Defense spending, Domestic energy led by AI infrastructure investment and Sun Belt real estate. These sectors, which he called “structural forces — not trades,” however, only make up 6-8% of the S&P 500, while the Information Technology sector dominates with nearly 32%.
“If you want to own the American growth story, you must look past the headline,” he said.
Defense Sector Seen As Mispriced Bet
President Donald Trump's fiscal 2027 budget proposal calls for a major shift in federal priorities, increasing defense spending by about 44% to roughly $1.5 trillion while cutting non-defense discretionary programs by 10%. The White House says the plan is aimed at strengthening U.S. military dominance and reinforcing national security infrastructure.
Neamtz described defense as a “mispriced” investment opportunity, with markets still viewing it as a politically driven budget line rather than a “structural” shift. “What is happening right now is different in kind, not just in degree,” he said.
He argued that the sector is undergoing a long-term rebuilding of platforms and capabilities after years of underinvestment, and that its technological advances will increasingly spill over into broader industries like manufacturing, logistics, and energy.
The companies benefiting from long-term government contracts also offer technology-driven growth potential, making the trend less dependent on election outcomes and more reflective of a broader shift, he said.
AI and Energy Growth Go Hand in Hand
The Wall Street veteran said the rapid expansion of AI infrastructure and domestic energy are closely linked, with a $650 billion AI buildout expected to nearly double U.S. data center electricity demand by 2028.
This rising power consumption is creating long-term growth opportunities for American energy producers and grid infrastructure providers. “The two compound each other,” said Neamtz.
Sun Belt Growth Fuels Real Estate Bets
The asset manager overseeing the Truth Social funds since January is upbeat on the Sun Belt real estate as the region’s “population inflows, business formation rates, and occupancy data continue to compound.” The Sun Belt refers to a broad region spanning the southern and southwestern states like Texas, Louisiana, North Carolina and South Carolina, among others.
The IRS migration data 2022–2023, released in April, show that Texas gained the most income tax filers from interstate migration with 56,473, followed by Florida at 55,349, North Carolina at 39,118, South Carolina at 29,214, and Tennessee at 24,104.
Investment vehicles to tap into this sector not only include REITs, but also homebuilders in the region and real estate operating companies.
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