When gamblers have limited money, they pick better odds. Smart investors are doing the same right now, rotating out of expensive growth stocks into steady dividend payers and value stocks. This shift is fueling outperformance in lower-risk strategies.
You're really crazy when you go to Vegas and you just got endless money. But when you know you got a limit, all of a sudden you get a little smarter. Wait a second, I'm maybe not going to play roulette. Maybe I'm going to play the pass line in craps, or maybe not so much blackjack, but I'm going to go to something that gives me better odds. And I think that's what we're seeing is a rotation right now in the stock market away from super expensive stocks into more cash flow generating stocks, which is why I think our strategies will continue to perform extremely well.