Tilting toward value Tilting toward value http://www.federatedinvestors.com/static/images/fhi/fed-hermes-logo-amp.png http://www.federatedinvestors.com/daf\images\insights\video\bakhshian-video-nov-5-2020-small.jpg November 6 2020 November 6 2020

Tilting toward value

Linda Bakhshian explains her thinking behind why she favors value.

Published November 6 2020
My Content
Video Transcript
00:03
I'm Linda Bakhshian, Senior Portfolio Manager at Federated Hermes.
00:07
How are you positioning your portfolio?
00:11
Value versus growth is likely to be a polarizing topic among investors. And as I mentioned before, value may actually be the cheapest asset class to own at the moment. At this point, we believe a balanced approach between quality, growth and cyclicals with a tilt towards value is warranted. We do not want to abandon growth altogether, giving you attractive, longer-term growth profile. And secular forces that are in sectors such as technology that is really difficult to ignore and to discount. However, after a long period of out-performance, these types of stocks may actually be ready for a pause, while beaten-down cyclical sectors may actually start to out-perform and close the valuation gap.
00:59
Disclosure: Views are as of October 20, 2020, and are subject to change based on market conditions and other factors. Views should not be considered a recommendation for any specific security or sector. Investments are subject to risks and fluctuate in value. Value stocks may lag growth stocks in performance at times, particularly in late stages of a market advance. Due to their relatively high valuations, growth stocks are typically more volatile than value stocks. Federated Equity Management Company of Pennsylvania 20-10166 (10/20)
Tags Equity . Markets/Economy .
DISCLOSURES

Views are as of the date above and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.

Investments are subject to risks and fluctuate in value. There is no guarantee that any investment approach will be successful.

Value stocks tend to have higher dividends and thus have a higher income-related component in their total return than growth stocks. Value stocks also may lag growth stocks in performance at times, particularly in late stages of a market advance.

Federated Equity Management Company of Pennsylvania