Thoughts about Value Investing and the changing investment landscape
Thoughts about Value Investing and the changing investment landscape After the Covid vaccines are announced, the flavor of the month is about sector rotation strategies into different areas. Personally, I am aware that technology stocks are trading at a elevated multiple in US and HK/CN and the upside may be limited. There is a real risk of missing out greater potential returns in other sectors like EV, financials, asset plays, pharmaceuticals etc. However, I still believe that the companies in my portfolio will still perform well with regards to their financials. Nonetheless, they may surface to become a growth trap if the growth rates fail to live up to expectations, or the stock price may fail to move as they are already incorporated in the rich valuations. As my portfolio is a mix of strong businesses in growth stocks, asset plays (Buildings), financials and ETFs, in the event that the value stocks do seek a resurgence, I will not miss it completely. In the speculative landscape