REMEMBER TO REBALANCE INTO OUT OF FAVOR SECTORS.
- U.S. growth stocks, mega-caps, in particular, have dominated markets and portfolios for years
- Their powerful performance means they have outsized positions in indexes and portfolios
- Out of favor groups like small caps, cyclical stocks, value, and emerging markets have been beaten down and in many cases are selling at the lowest relative values to large-cap growth since the financial crisis
- Divergence in valuations has created an opportunity not seen in years, to take some profits from overvalued large-cap growth and add to these unpopular and undervalued sectors
