Understandable concern, but I felt compelled to comment when you said that the FAANG stocks are under-owned by most active managers... so they are "over-owned" by who? Not the passive, index owners, but by other active managers. Still has to be a zero-sum net ownership. Even if they are so big so that their earnings growth and valuation premiums subside, I think they will likely be solid return "ballast" for the overall market. Slower than expected growth might still provide modest positive returns for the them. The unidentifiable other big winners within the market will propel the averages. Underweight the biggest most successful companies at your risk!
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Ah yes, billionaire Gary Antonacci....
Post: Dual Momentum?
Link to comment from May 30, 2025
Understandable concern, but I felt compelled to comment when you said that the FAANG stocks are under-owned by most active managers... so they are "over-owned" by who? Not the passive, index owners, but by other active managers. Still has to be a zero-sum net ownership. Even if they are so big so that their earnings growth and valuation premiums subside, I think they will likely be solid return "ballast" for the overall market. Slower than expected growth might still provide modest positive returns for the them. The unidentifiable other big winners within the market will propel the averages. Underweight the biggest most successful companies at your risk!
Post: Anomaly Ahead
Link to comment from January 13, 2022