You might think institutions with their large staffs of highly-paid and experienced investment professionals would be a force for stability and reason in financial markets. They are not; stocks heavily owned, and constantly monitored by institutions, have often been among the most inappropriately valued.
A perfect example of this is the Consumer Staples sector. Last year, the Staples were heavily owned by the institutions believing they were a "defensive bet" in what they considered to be an expensive stock market that was trading at peak earnings. We, however, thought such concentration, and money flows into