Let Others’ Mistakes Be Your Opportunity

Growth stocks have dramatically outperformed value equities as market participants, worried about trade tensions and the aging bull market, seek growth and "stability" at any price.

But investors would do well to remember the experience of the Nifty Fifty stocks, which peaked in 1973 and then underperformed the S&P 500® Index for the remainder of the decade despite growing earnings.

Meanwhile, multiples for many value stocks are inordinately low, even among companies that are well capitalized and have competitive advantages. We believe these firms could deliver significant earnings growth and multiple expansion should headline worries ease.