Go Long Value, Rotate Out Of Growth Stocks

Guest post by Anthony Fogler, founder of Anassa Partners. “Low interest rates have made it very cheap for companies to grow. Higher ROI will outperform when capital becomes more expensive.” David Poppe, Sequoia Fund’s CEO, on why value stocks have underperformed growth stocks. According to Renaissance Capital, there were 192  biotech IPOs in the past 5 years, raising more than $14.7 billion.  Most of these companies are development stage businesses, have never earned money and most never will. Despite that, these companies have lofty market valuations as investors bet on the next blockbuster drug. Technology is also trading at bloated…