The Dispatch

Investing Q&A Series

Q: How can I underweight the “Magnificent 7” and other stocks with extremely high valuation multiples?

A: Consider adjusting exposure to these high-multiple stocks by allocating capital to lower capitalization and value stock managers with historically lower multiples. Positioning portfolios to avoid concentration in potentially overvalued assets helps manage downside risk while still offering growth potential.

Small Cap Models:

• Zacks Small Cap Equity
• Eagle Ridge Small Cap Quality
• Ativo Small Cap
• Ironwood Small Cap Core

Large Cap Value Models:

• Dearborn Rising Dividend
• Alpha Quant Value Equity

Have investing questions, or even questions AND answers? Submit them to insights@freedomadvisors.com.