If you’re familiar with me, the firm, or our investment philosophy, you probably know that everything we do for our clients is based on empirical evidence. We don’t manage money for our clients based on gut instinct, speculation, or prognostication.
Growth or value — what’s your style? The debate surrounding which strategy is superior has raged on for ages. For a quick refresher, growth investors look for stocks that will grow at a high rate for a relatively short period of time. Value investors look for stocks that are currently undervalued and are expected to increase to their true value over a longer time horizon.
Companies like Facebook, Amazon, Netflix, and Google (AKA, the FANG stocks) fall into the growth category, and paced the market in 2017 with an exceptionally strong year. Looking ahead, what should we expect in 2018? Should we favor growth strategies, given the momentum of the FANG stocks? Or should we expect value shares to outperform?