Most [Many] investment managers are uncomfortable when the construction of the portfolios strays much from the S&P 500. Stock selection is often a byproduct of whether to underweight or overweight this or that industry relative to its makeup in the index. Those decisions, in turn, are heavily influenced by the near-term outlook. Everyone wants to belong to those groups that are “acting well” (going up fast) and underweight those that are lagging.
Bill Miller, CFA
We periodically send out emails when new content is posted to our blog. Sign-up today to receive investing insights and variant perspectives from our team.