INVESTORS’ CHOICE: CROWDED HOUSE OR PRUDENT DISTANCING? September 2020 Despite the recent volatility in large cap U.S. stocks, performance leadership has been driven by the top ten contributors in the S&P 500 more greatly than any other period in the past ten years. Shares of large technology companies continued to march higher in August, causing large cap indexes and many investors to be highly concentrated in their ownership of these companies. While the businesses themselves are in many cases remarkable, the price being paid for their shares appears stretched and, for long term investors, they may prove to be poor investments in the coming years. We believe that it is prudent for investors to look elsewhere, to less crowded segments of the market, for quality businesses at more reasonable valuations.
