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Asset management and fund structuring boutique

Risky index

Feb 27, 2024

Technology and tech related sectors now represent ½ of the value of the US stock market index. The weight of defensive sectors, like food producers, food retail, utilities or pharma, is down to 20%. Cyclicals, as industrials, energy, financials or commodities, have fallen to 30%. While technology has worked extremely well for investors over the past decade, the last time technology was so dominant was at the peak of the Internet bubble. We believe that the traditional sectors deserve more attention and present undervalued investment opportunities away from the crowd, hence an opportunity to diversify and derisk portfolios away from the highly valued S&P 500.

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