February 9, 2023
By Peter Bower
Since the beginning of the year, growth stocks have rebounded nicely. Last year, so many of these were pummeled. It was clearly a year for value-oriented and defensive companies. These led returns. Now, both growth and value strategies are doing well. Day-to-day, one may lead and then shift back to the other. So far, both are producing similar results.
How returns between the two categories pan out for the entire year cannot be predicted, but at least January indicates that both may do well. Just do not annualize the January returns; they would project a 119% return. This is unrealistic. The Bull and his partners do expect a good year, but not a doubling!
The average for returns for the S&P 500 one year after a recession and the resultant bear market is 21%. This would be a good expectation for 2023. The Bull and his partners would be happy with this result. However, expect a lot of back and forth and periods of great volatility. Stay steady my friends.
The Lonely Bull
