The Search for Bargains In Value Investing

I’ve been watching financial markets — in one way or another — for a long time. It’s hard to believe, but I’m now almost two decades into my career. That tenure provides enough experience to know things come in cycles. Early in my career, it was the tech bubble; now it’s FANG stocks — Facebook, Amazon, Netflix and Google. What a lot of people lose sight of, in all the excitement of the trajectory of these tech stocks, is valuation.

At a certain point, valuation is going to matter and people are going to start paying attention to whether they’re actually getting what they’re paying for. But until that happens, where can value investors turn? It’s certainly been a tough environment, but there are still some attractive risk-reward opportunities out there. In today’s update, I share three sectors that currently pique my interest.

References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell stocks. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.

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.

This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.