Optimism in Value Investing in 2019?

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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.

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      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.

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