Rotation from growth to defensive value
The guest discussed shifting portfolio exposure from high-flying growth and tech names into defensive value equities to lock in gains and manage risk.
The argument
Michael Leibovitz noted that his firm recently took profits in technology holdings to fund purchases in stable, cash-flowing value names. They view this as a prudent risk-management step amid market uncertainty.
The thesis, stress-tested
✓ What validates it
- ✓Outperformance of the S&P 500 Value Index relative to the Growth Index over the next quarter
- ✓Earnings growth stability in consumer staples and utilities
▸ Risks discussed
- ▸Value stocks may underperform if growth/tech momentum continues uninterrupted
- ▸Defensive names offer lower upside in a raging bull market
Hear it yourself
"We've got a deal with Iran, and it's gonna get signed this weekend, and that saved the markets. So I guess my question for you is there's just so much coming at the markets right now from all these different directions, good news, bad news, news that changes every couple of minutes, you know, with what's going on in Iran. Which forces do you think are gonna win out here, and in which direction do you think they're gonna take the markets? It's it's a good question because there's a lot of headwinds and tailwinds. And I think Everything everywhere all at once. Right. Right."
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE