How to gain from market cycles

Year 2019. As a handful of large-cap stocks continued their upward march, Ms X made what seemed like a counterintuitive decision. She began trimming her exposure to outperforming large caps and systematically increased allocation to beaten-down quality mid and small caps trading at attractive valuations. Her colleagues questioned this move away from 'safety'. Most market pundits were preaching the need to stick with 'quality large caps.'