Source Post

Index Funds Are Broken & Stock Picking is Back | Jonathan Wellum

WealthionApr 22, 2026

The creator argues that the heavy flow of money into index funds and ETFs has led to overvaluation in large-cap stocks within those indexes. He suggests that this creates an opportunity for active stock pickers to find undervalued companies outside of the major indexes, offering better potential for long-term returns by being price setters rather than price takers.

Linked Mentions

Tickers discussed in this post

NOWBullishMedium ConvictionSignal-backedPrimary

Buying ServiceNow as current valuations price in negative sentiment, expecting AI utilization.

AMZNNeutralMedium ConvictionSignal-backedSecondary

Holds Amazon, liking its business model and long-term ownership.

ALCOBullishHigh ConvictionSignal-backedPrimary

Carl Alco Corporation is a strong buy due to its consolidating roofing and siding business, fantastic cash flow, and terrific margins, outperforming many tech companies.

Linked Signals

Tracked calls opened from this post

ALCO
buy opened Apr 22, 2026
-3.66%