In this edition of Analyst Insights, Akash Ghiya explains the pillars of our investment thesis in the Energy sector, reviews the sector’s 10-year history, and discusses the key issues on investors’ minds in 2019.
We believe the market has set up a rare opportunity for value investing. The valuation gap between growth and value stocks is at historically high levels, similar to that last observed during the dot-com bubble of 1999-2000. For investors who've benefited from the strong rally in growth stocks, history suggests it may be prudent to reallocate profits toward value stocks, where valuations are much more reasonable and future returns are potentially more favorable.
Bottom-up Investing After Macroeconomic Anomalies
With valuation as our north star, we apply the same, bottom-up investment process across all sectors of the economy, regardless of their macroeconomic sensitivity.