Ed Clissold Profile picture
Chief U.S. Strategist for Ned Davis Research Group

Oct 31, 2017, 8 tweets

1/8 Einhorn laments death of #ValueInvesting. Big picture: Value's not dead but it's Growth's longest run on record at 11 yrs @NDR_Research

2/8 Sluggish EPS growth means investors pay premium for stocks that can grow sales & EPS. Almost by definition, those are Growth stocks.

3/8 Value may come back when economy finally hits escape velocity

4/8 Sectors have big say in Growth-to-Value transition. w/o Financials RS, hard to see sustained Value move

5/8 1st domino to fall may be consumer (CS, CS, HC) to commodities (ENG, MAT) @PatTschosik

6/8 2nd domino could be Financials but need higher rates and steeper yield curve

7/8 Problem w/Value is that defensive Value sectors are highest dividend yielders, and they are expensive

8/8 Tech could be last Growth domino to fall. FANGs scary but Tech not expensive as a whole. Einhorn may have to wait.

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