Wealthtrack

Large-cap U.S growth stocks, particularly tech stocks, have been the overwhelming winners of the last decade. They now dominate the market. The top ten S&P 500 stocks, including the FAANGs, account for more than 25% of the index’s total market value, a concentration that worries some market watchers because it is reminiscent of other market tops such as the dot-com bubble when internet stocks made up over 30% of the S&P and the credit bubble when banking stocks reached more than 20%. With the exception of short-lived spurts value stocks, small-cap stocks and international stocks have badly lagged. This week’s guest believes the days of this concentrated outperformance by large-cap growth stocks are numbered and suggests some underloved and under-owned alternatives. He is financial thought leader, innovator, and investor Robert Arnott, Chairman of the Board of Research Affiliates, which he founded in 2002 as a self-described “research-intensive asset management firm that focuses on innovative products.