Fiduciaries are actively derisking from tech
The guest argued that passive indexing has left portfolios dangerously over-concentrated in highly valued tech stocks, prompting sophisticated financial advisers to reconstruct portfolios toward value.
The argument
With tech representing an outsized portion of the S&P 500, aging baby boomers are overexposed to tech valuations. Fiduciaries are actively shifting allocations toward defensive sectors like healthcare and energy to fulfill their responsibilities.
The thesis, stress-tested
✓ What validates it
- ✓Sustained outperformance of the equal-weighted S&P 500 or value indexes over the market-cap-weighted S&P 500
- ✓Institutional fund flow data showing net outflows from tech into healthcare and energy
▸ Risks discussed
- ▸Tech earnings continuing to outpace the rest of the market, making rotation painful
- ▸A sudden drop in energy or healthcare commodity/service pricing
Hear it yourself
"And to me, the fundamental setup for gold with a slowing economy and high deficits and currency debasement in Washington and what we call financial repression, I think gold's within the next couple of years, gold's gonna be 6,500, and, that that's a great risk reward right here."
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