Needless to say, you are reading the fourth edition of our annual thought leadership compendium in a much different environment than you did the previous one.
Though 2020 was a generationally poor period for value indexes relative to growth, hopes that the worst of the Covid-19 recession was behind us helped fuel a fourth quarter rebound in the mature, p
As long-term investors, we think it is important to take the right message from the strong broad market returns in 2020. As we’ve often cautioned, extrapolating trends is a risky way to commit capital, particularly when these trends reflect an extraordinary operating environment like that in 2020.
Although 2020 ended with the Covid-19 pandemic surging and the economic recovery from recession still far from complete, investment markets nonetheless maintained a state of exuberance that was not necessarily rational.
While equity markets continued their rebound from the depths of the Covid-19 selloff, leadership shifted as signs of a “reflation” trade that emerged in September persisted.