David Herro: Catalysts For Value Investing In Today’s MarketsThe Acquirer's Multiple
In his recent presentation at Natixis Investment Managers, David Herro discusses the catalysts for value investing in today’s markets. Here’s an excerpt from the presentation:
We know not only that has value been lagging but international value has taken it on the chin. We’ve had some of these things in our face like a strong dollar, slower growth, but again these things are reversing themselves.
There’s no rule that says U.S stocks always have to outperform stocks outside the U.S, in fact I think there’s a strong argument to make that the tables are starting to turn there.
So not only are we very well exposed as value investors but I think there’s an acute value opportunity in the international value space.
So what’s the case? The case is basically there’s an investment opportunity based on valuation differentials where there is a catalyst for these differentials to close. The differentials are big. We’re going into a period of stronger economic growth. I believe we’re going into a period of higher inflation and higher interest rates and these forces in the backdrop I think are extremely conducive to help close that valuation differential.
You can watch the presentation here:
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