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Avoiding The Crowd Is A Good Bet For Beating The Stock Market
The article includes comment which seem to suggest that investor should avoid active managers and small-cap stocks...????
If there is a crowded trade in equities, its in the 'must own' FAANG stocks -- each of which are copiously represented in passive stock indices. And index funds are drawing a phenomenal amount of investor fund-flow. -- Those flows are then being invested in FAANG, regardless of price/multiple paid.
Strange that Bloomberg would draw the exact opposite conclusion. Almost like the article is intended to push the gullible into the indexing craze.
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If there is a crowded trade in equities, its in the 'must own' FAANG stocks -- each of which are copiously represented in passive stock indices. And index funds are drawing a phenomenal amount of investor fund-flow. -- Those flows are then being invested in FAANG, regardless of price/multiple paid.
Strange that Bloomberg would draw the exact opposite conclusion. Almost like the article is intended to push the gullible into the indexing craze.