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Market. Since last February, we have been in a very productive equity market. We are having a little pause right now which he doesn’t think will take very long. There has been a great focus on passive, low fee investing and being an index investor, at precisely the moment when correlations, or the degree to when stocks and sectors behave the same, is at its lowest level in 15 years. The opportunity to target specific themes and companies is really an outsized opportunity right now, and he hopes people will be able to take advantage of it. From 1966 to 1982, the market travelled sideways in a series of advances and declines. The late 70s was when Vanguard got its start in Index investing. That was the last time managers had been stupid for the previous 15 years. The S&P 500 from 2000 to 2013 travelled sideways in a series of advances and declines, and many managers had a hard time beating it. The topic now is index investing/passive investing, but that is looking backwards. Today, we have very strong clear themes in this market, and the opportunity to target and be an active manager has not been better in 15 years. The market bottomed in 1981, and by 1985 no one was talking Index investing.
President & Chief Investment Strategist, Barometer Capital Management