While the comparisons with the Dot Com bubble are often misguided, the truth is extended market valuations, high equity market concentration, and the expected Initial Public Offerings (IPOs) of private companies at trillion-dollar valuations does bear watching. These dynamics create a potential risk-reward dynamic that cap-weighted US large-cap portfolios are ill-equipped to remediate.
Equal sector weight S&P 500 strategy with increased exposure to defensive sectors like consumer staples, health care, and utilities with more balance than equal stock weighted strategies.
Applies a sector-by-sector “Dogs of the Dow” approach to US large-cap equities, selecting higher-yielding stocks within each sector and equally weighting the portfolio.
