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So far Poplar Forest Research has created 33 blog entries.

Questions of Value — Interest Rates and Financial Services Stocks


This is the first in a series of memos in which we will address common questions from our clients about the Partners Strategy and Value investing. In this insight, we discuss why we believe the value opportunity in our Financial Services holdings is compelling in the current interest rate environment.

Questions of Value — Interest Rates and Financial Services Stocks2021-11-18T15:51:28+00:00

September 30, 2021 Quarterly Letter


With the economy getting back to normal more quickly than expected, the U.S. Federal Reserve will soon start the multi-year process of normalizing monetary policy. In the face of potentially rising interest rates, investor worries are growing: stocks look expensive, bond prices go down when yields rise, and cash earns nothing. But, there is a fourth option: value stocks.

September 30, 2021 Quarterly Letter2021-10-04T17:03:47+00:00

June 30, 2021 Quarterly Letter


With growth stocks having reasserted themselves as interest rates trended lower during the second quarter, some naysayers are already predicting the end of this value cycle. I couldn’t disagree more. For one, I continue to believe that bond yields have separated from reality due to price manipulation on behalf of central banks at home and abroad.

June 30, 2021 Quarterly Letter2021-07-28T21:25:57+00:00

March 31, 2021 Quarterly Letter


During these wild market swings, we’ve seen a marked change in the type of companies that investors favor. Former growth darlings are being sold to free up funds to purchase shares of economically-sensitive businesses. Investors want beneficiaries of economic reopening and reflation driven by vaccine deployment and continued fiscal and monetary stimulus. As a result, value stocks have begun to materially outperform growth stocks.

March 31, 2021 Quarterly Letter2021-05-24T22:59:07+00:00

December 31, 2020 Quarterly Letter


The most important job for our investment team is to identify situations where embedded expectations are unreasonably low while avoiding stocks that are cheap for good reason (aka value traps). Cheap stocks can stay cheap unless fundamentals turn out to be better than expected. In contrast, the “great” company that merely ends up being “good” often generates disappointing results for its shareholders - just like so many New Year’s Eves.

December 31, 2020 Quarterly Letter2021-05-24T23:04:12+00:00

September 30, 2020 Quarterly Letter


While investors seem to be increasingly addicted to free money, I’m becoming ever more worried about the unintended long-term consequences of low rates, especially given the Fed’s new ultra-dovish policy targeting higher inflation. As former Fed Chair Martin said: “What’s good for the United States is good for the New York Stock Exchange. But what’s good for the New York Stock Exchange might not be good for the United States.”

September 30, 2020 Quarterly Letter2020-10-01T17:32:50+00:00
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