With stock multiples at historic highs, Portfolio Managers Ted Thome and Alec Perkins explain why they believe it’s important for investors to focus on downside risk and look across sectors, market capitalization and the value spectrum to find attractive valuations.
- Despite high equity valuations, we think it is still possible to find companies trading at attractive multiples, particularly by looking across all market caps.
- However, we would caution investors against potential value traps, where stocks appear cheap, but the companies are being disrupted or facing secular headwinds.
- We believe investors should look for value opportunities where the long-term fundamentals are intact, while also focusing on potential downside risks.
ABANDON YOUR DOUBTS,
NOT YOUR GOALS
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