Risks and Rewards in Value for 2017

Risks and Rewards in Value for 2017

Risks and rewards. In the value arena, these are the two Rs that my team’s world revolves around. Investing is never without risk, but our job is to identify opportunities that have a high potential for reward with a relatively low degree of risk. In other words, we’re tasked with finding areas that are undervalued and have underperformed. It’s a complex job—and one I thoroughly enjoy.

So moving further into 2017, what’s on our radar? Here I share my thoughts around four industries: energy, healthcare, utilities and real estate. My evaluation takes into account historical performance, fundamentals and potential policy changes accompanying a new administration. Keeping those factors in mind, we believe two of these industries provide opportunities, and two do not.

Learn more in the video below.

 

The opinions expressed are those of Mike Liss and are no guarantee of the future performance of any American Century Investments fund. This information is for educational purposes only and is not intended as investment advice.

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.