The U.S. stock market is making a transition from a focus on growth stocks to one focused on value. This transition would reflect a growing optimism in a reacceleration in our economy’s growth rates. Growth in Europe, Japan, and even China is accelerating, giving hope to investors here that our economy will do the same. Usually, such transitions happen after stock market corrections, but that is not necessary. This one is taking place as a hand-off in leadership, like a baton being handed from one runner to the next.
Leadership change sometimes takes a little time, some back and forth is not unusual. Rarely is there absolute clarity about future prospects. Riverplace Capital has anticipated this leadership change and is positioned for it.
We anticipate the second half stock market performance to be led by this value category. Of course, we will make necessary adjustments. Stay steady, my friends.
The Lonely Bull