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Business Optimism Crashes (EP.307)

Animal Spirits Podcast

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The Psychological Impact of Diversification

Most of the upper performance in this period reflects richening relative valuations, hardly a reason for raising or even retaining US overlays today. Apple and Microsoft now make up almost 14% of the total index, which is nuts. The top 10 stocks in the S&P make up 29% of the index,  the highest it's been since probably the 60s or 70s. And I do think you'd be fine if you owned the whole US stock market and could handle it,. But I think that owning other strategies, other types of investments, other geographies, just can help you if you have bad luck.

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