Developing thesis
Setting aside the question of how much to allocate to domestic (US) markets, I’m teasing out a thesis for US small caps.
Not going to write the whole thing out, but thinking it’s not an index play but rather:
- Filter for low debt
- Filter out regional banks
- Opp’y for multiple arbitrage
- Identify small caps able to adapt to/adopt AI (app layer) at pace and/or enjoy geographic/sector moats
- Identify companies benefiting from de-globalization
- Avoid consumer discretionary & real estate
- &c
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