In this interview, he reflects upon value investing headwinds now diminishing, catalysts for realizing value in Europe and why volatility is his long-term friend.
How have international equities been affected by the Covid-19 crisis?
Can you share some thoughts on the “growth vs. value” dichotomy?
Why has the premium for growth stocks risen to such an extreme?
How does volatility create opportunity for value investors?
What’s an example of a sector that seemed to experience unjustified price declines in the pandemic?
How do you think about further federal spending related to the pandemic and inflation risk?
How might you be preparing for a higher growth, interest rates and inflation scenario?
What opportunities are you seeing in emerging markets?
How does the Covid-19 crisis equate to past economic crises you’ve experienced?
2 Style returns dispersion between growth and value is near historic levels.
|Data as of 12/31/20||1-year||3-year||5-year||10-year||20-year|
|MSCI EAFE Growtha||18.3%||9.7%||10.5%||7.5%||5.1%|
|MSCI EAFE Valueb||-2.6%||-1.2%||4.2%||3.4%||3.8%|
b The MSCI Europe, Australasia and Far East Index is an unmanaged index of value stocks of companies located in Europe, Australasia and the Far East.
3 A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital for the purpose of acquiring an existing company.
4 Bitcoin is commonly abbreviated as "BTC." Bitcoin is a type of cryptocurrency. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to. All bitcoin transactions are verified by computers, but BTC are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin is very popular and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed above may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted.
Equity Securities Risk: Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Value Investing Risk: Value investing carries the risk that a security can continue to be undervalued by the market for long periods of time. Foreign and Emerging Market Securities Risk: Foreign and emerging market securities may be subject to greater political, economic, environmental, credit, currency and information risks. Foreign securities may be subject to higher volatility than US securities, due to varying degrees of regulation and limited liquidity. These risks are magnified in emerging markets. Currency Risk: Currency exchange rates between the US dollar and foreign currencies may cause the value of the fund's investments to decline. Concentration Risk: Concentrated investments in a particular industry may be more vulnerable to adverse changes in that industry or the market as a whole.
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