The Top Weightedness of the S and P 500

In Episode 2 of the Rational Reminder podcast we discussed the following:

• The underperformance of value stocks
• Are we in a Winner Take All market?
• Facebook’s crash
• Global value performance
• Canadian value premium at ~+5.5%
• Rebalancing into the pain
• Factor diversification
• Having a philosophy and sticking with it
• Index fund flows are slowing down in the US
• Canadian active funds are still dominating passive ETFs
• Markets are still efficient
• Deciding to be an index investor takes work
• Fewer highly skilled active managers make markets more efficient
• Canadians might need to buy real estate to retire
• Doctors were sold out by MD Management
• Should you listen to the yield curve?
• Michael Batnick’s chart crimes
• DFA’s weights vs. the S&P 500 weights

The stories we talked about:

• Don’t cry over underperforming US value stocks
• O’Shaughnessy Quarterly Investor Letter Q2 2018
• Index Funds Are Going to Be Just Fine
• The growth of index investing has not made markets less efficient
• People Aren’t Dumb. The World Is Hard.
• Many doctors feel “betrayed” by sale of MD Financial Management
• Earth to investment advisers: You’re blowing it with millennials
• Arguing With the Yield Curve
• Robot vs. human: When you should invest with robo advisors

The charts we talked about:

Image source: Michael Batnick

For more information or to contact Cameron and Ben, visit pwlcapital.com