Investors and advisors need to beware of style drift, especially in this period where stock market results seem to be disconnecting from macroeconomic fundamentals. Our quarterly letter details Poplar Forest's consistent value approach to investing.
The stock market appears to be forecasting an upcoming economic environment that is meaningfully different than the signals being provided by the employment market and interest rates. Which expectations are correct? This paper discusses our thoughts on this disconnect and the types of companies we favor.