Managers Shift From S&P 500 to 35% Bonds and Equal-Weight Funds Amid Valuation Gap
Updated
Updated · CNBC · Aug 21
Managers Shift From S&P 500 to 35% Bonds and Equal-Weight Funds Amid Valuation Gap
1 articles · Updated · CNBC · Aug 21
Summary
Victor Haghani cut equity exposure below his fund’s 75/25 baseline, positioning ELM at 30% U.S. stocks, 35% non-U.S. stocks and 35% fixed income as he sees U.S. long-run returns nearing Treasuries.
Sam Huszczo stayed bullish for the next 12-18 months after 10 of 11 S&P 500 sectors beat earnings, but added equal-weight and momentum strategies rather than relying on mega-cap tech alone.
Both managers tied the shift to concentration risk and hyperscaler data-center spending—about 40% of revenue by Huszczo’s estimate—which is replacing buybacks and could weaken future support for earnings and share prices.
Haghani said U.S. stocks now trade at roughly twice the P/E of non-U.S. markets, making overseas equities more attractive over time even if a broad correction would likely drag global stocks down together.
Their broader message was that passive index investing can still work, but static asset allocation cannot when market valuations, volatility and risk conditions are changing.
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