Diversification
For casual market followers, it may seem as if we are in one continuous bull market. However, the market continues to shift below the surface. This past quarter healthcare stocks were up 11.7 percent while the technology sector was up only 1.4 percent. The techdriven market of the last 15 years has finally given way to diversification. Emerging market stocks were the best place to be in 2025, followed closely by developed international stocks. Commodities have gone sky high with gold over $5,000 per ounce, and silver has been on an even bigger run. AI is impacting everything. On a weekly basis, we run attribution on our own core equity strategy. At one point in December, the best five stocks were all technology, and the worst five stocks were also technology. On the whole, we had a slight underweight to technology, so it is not as if this is the only area in which we are invested. The key takeaway is that we are in an environment where diversification is not only working, but necessary.
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