primeimages/E+ via Getty Images Key Takeaways The U.S. stock market had its third consecutive year of double-digit returns in 2025—it has shown notable resilience but is also trading at a high valuation and at the most extreme level of concentration in almost three decades. In this market environment we believe it is critical for a portfolio manager to be active, selective and flexible, and we are advising clients to decrease exposure to the passive indexes and their stretched valuations. Davis Opportu ...