Stewardship Report: 2020

Friday 23 July 2021

Perspectives

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Biden’s Election Momentum and Financial Markets

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The Continuing Case for US Value

Today’s investing environment is characterized by higher normalized inflation, higher supply-constrained commodity costs, labor shortages and quantitative tightening. We believe these are  primary conditions for the potential outperformance of value over growth, and that this cycle’s transition has likely only just begun. Furthermore, secular changes of value vs. growth are best measured in quarters, or even years; therefore, we do not see short-term rallies of growth stocks indicative of a larger long-term trend.