Shed Connect – Equity Market’s ‘Sector Dispersion’ a Buying Opportunity
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Michael LaBella, CFA
Head of Global Equity Strategy
NOVEMBER 28, 2018
Quoted in the Press
“We will see more volatility, and October gave us a view into what it will look like. It is an opportunity for active management. Index investing is not bad but index portfolios are not diversified; global passive equity funds are full of US FANG stocks and other IT stocks.
“Ten years ago, the US equity market was 45 percent of the MSCI World Index. Today it is 60 percent. If there is a reversion, those index portfolios are going to be penalized.”
LaBella argues that the global equity market will suit managers that have a diversified rather than a concentrated approach. “High concentration can give you big returns but also big losses,” he says.