Longboard’s original research proves that over the long term, a small minority of stocks drive returns for the overall market.
If you’ve heard of the Pareto Principle before, this might not surprise you.
What does this mean for investors? It may be more efficient to navigate this reality by getting defensive, and strategically avoiding the majority in this equation: the underperforming investments.
Be aware of disproportionate rewards
Here’s a closer look at our research on this competition gap in action in the U. S. stock market.
This post was published at David Stockmans Contra Corner on May 18, 2016.
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