SP500/short
S&P 500 is 45% tech/AI, eliminating diversification and priming a rotation away from passive mega-cap concentration.
"The passive S&P 500 Index no longer offers diversification."
Peak-
Smead Capital's Q2 2026 newsletter yields two trades: short the S&P 500 on extreme tech/AI concentration (45% of index, 2000-era valuation multiples), and long OXY as the oil equity expression of the deeply undervalued, underrepresented energy sector (3.1% of index) generating strong free cash flow at $70/bbl.
original"The passive S&P 500 Index no longer offers diversification."
we remain heavily invested in these oil stocks because they offer great value relative to the stock market and are hugely underrepresented in the passive S&P 500 Index with a 3.1% position