Q3 2021 Review / Remaining 2021 Outlook:
- We expect to see a continued “tug-of-war” for leadership between growth companies and value companies. We still favor value over growth and believe it will outperform over the long-term.
- We expect inflation, while sticky, to be transitory. Supply chain issues could still put wrinkles in the consistency of profits for some sectors.
- Pay attention to the valuation of your stocks, as it will be very hard to outperform the market with a portfolio full of overvalued companies.
- We continue to “pound the table” about underweighting or even eliminating your bond allocation. Bond prices will be under pressure for years as the Fed tapers bond purchasing and eventually begins raising rates.
