The move to passive investing, into index funds and out of actively managed mutual funds, means more money flowing into the largest companies in the S&P 500.

Are we witnessing a self-fulfilling prophecy where the larger US companies continue to maintain high valuations simply because of a shift to more passive investing? As we continue to monitor this, you may see the D&K portfolio transition to small sized companies relative to primarily large companies we have held since the housing crisis.