Why You Shouldn't Vary From the Benchmark

I've been only seriously embarrassed through times ever in my career and I'm not bearish now. The reason to vary from the benchmark, whatever the benchmark is, is if you think the benchmark is going to do really badly. That doesn't make the benchmark inappropriate for the client. But then there's a reason to vary what's in the portfolio from the benchmark because you're hoping to do well compared to the benchmark. If you carve out a few bear markets and otherwise are equitized, you end up doing better in the market.