Joel Tillinghast, who specializes in small-cap stocks, said his job as portfolio manager has also become tougher because of the changing nature of the U.S. economy.
It increasingly appears that the stocks investors are buying when the market dips in general are the stocks that have generally been going up, not the ones headed down.
Outperformance is a factor of the profitability of the companies in the "sin" industries. Investors can emulate those returns in more straight-laced businesses.
It’s easy to position your client’s portfolio for the oncoming bear market—if you know when it's coming. Advisors shouldn’t try to invest around a down market, but they should prepare their clients for the inevitable bumps.