Crackers Investment Cycles: Leveraging Value Stocks for Future Gains

Investment performance works in cycles. Some countries, sectors or types of investment do well over time and become overvalued while other investment areas underperform and become undervalued.

This chart shows how value companies (cheap companies) have performed relatively poorly in the last 10 years, but over history, periods of sustained under performance are then followed by sustained over performance. The longer and sharper the under performance, the better the expected returns become.

As we get to the end of this decade of under performance for value, we expect value companies to over perform in the next 10 years and are building this expectation into clients portfolios. This is just one simple way we can give clients a greater chance of success without taking extra risk.

For more simple and logical investment insights, get in touch.