Optimism in Value Investing in 2019?

    Facebook Twitter LinkedIn Email

By Michael Liss - February 6, 2019

The calendar isn't like a TV show. The stories that dominate the news cycle don't just magically wrap-up at the end of the year.

I raise this point because many of the same geo-political and economic dramas that hung over investors' heads in 2018 are still with us as we enter 2019: tariffs, interest rate hikes, and falling oil prices among them.

For me, the big story is the "value versus growth" debate. For the first time in a long time, value stocks started to outperform the market darlings of growth in the fourth quarter of 2018. You might recall that over the past year or so, I've predicted a rotation back into value since. Why? Because in my opinion, the valuations on FAANG (Facebook, Apple, Amazon, Netflix, Google) stocks (and those like them) were so out of whack from the fundamentals.

Will the rotation into value continue in 2019? I hope so. But here's what I do know: we're optimistic about value this year. Click on my latest video to find out why I'm especially intrigued by energy and financial companies in 2019.

Transcript

    Facebook Twitter LinkedIn Email
  • Related Articles
  • More From Author

Finding Perspective Amid Turbulence

Head of Investment Solutions Cleo Chang analyzes possible performance drivers in a volatile 2019 and market reactions to similar selloffs in the past.

Opportunities in Emerging Market Debt: The Case for Investing Selectively

In this quarterly update, Portfolio Manager Margé Karner discusses the good and the bad of emerging markets debt heading into the new year.

Global Growth in 2019: All Eyes are on the Fed

Answers to questions posed in 2018 could have significant impacts to global growth in 2019. Here’s what we think could happen.

    Optimism in Value Investing in 2019?

    While the end of 2018 may have been rocky for financial markets, our value team is excited about their prospects in 2019.

    Stocks Continue to Overcome Headline Risk

    What will 2019 look like? This quarter, Portfolio Manager Mike Liss considers the cumulative effect of crosswinds such as trade tensions and tax cuts.

      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.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. 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.

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

      Diversification does not assure a profit nor does it protect against loss of principal.