{"id":13883,"date":"2023-01-02T17:26:31","date_gmt":"2023-01-02T23:26:31","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=13883"},"modified":"2023-01-02T17:26:31","modified_gmt":"2023-01-02T23:26:31","slug":"stylebox-update-value-still-outperforming-growth-international-and-non-us-ripe-for-a-weaker-dollar","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=13883","title":{"rendered":"StyleBox Update: Value Still Outperforming Growth; International and Non-US Ripe for a Weaker Dollar"},"content":{"rendered":"

2022 was the first year since 2016 that value investing thoroughly trounced growth investing.<\/p>\n

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Click on the above table and you can see the progression between growth and value amongst the large-cap, mid-cap and small-cap asset classes.<\/p>\n

It should be no surprise to readers: growth had a nice spurt off the lows in June and October ’22 but the higher 10-year Treasury yield is acting like a wet blanket for growth stocks.<\/p>\n

Don’t ignore the annual return or “annualized” data found in the bottom left-hand corner of the spreadsheet. Longer-term large-cap growth returns still look too high, although the 3-year return is now more normal so to speak. The mega-cap and large-cap names<\/p>\n

Non-Us Ripe for a Continued Drop in the Dollar:<\/strong><\/em><\/p>\n

Looking at annual return data, there is no question non-US and International look ripe for some robust returns, particularly looking at the 10-year and 15-year annual returns.<\/p>\n

\"\"<\/a><\/p>\n

But what’s the catalyst ? Maybe a weaker dollar.<\/p>\n

The last time non-US did really well for an extended period was the decade from 2000 to 2009, when large-cap growth imploded with the March, 2000, peak.<\/p>\n

Maybe the negative returns this year in the Non-US asset class (the tickers listed above are non-US and international ETF’s including a international mutual funds) can’t be faulted given Ukraine and China’s issues, but China is supposedly set to begin re-opening and Ukraine may be a non-issue moving forward if it remains in stalemate.<\/p>\n

This isn’t a prediction but I continue to think that non-US investing opportunities, meaning international and emerging markets, have a compelling risk \/ reward when looking at the 10 and 15-year annual returns.<\/p>\n

This blog is just waiting for a stronger signal to allocate more funds to Non-Us investments, like the Oakmark International Fund (OAKIX) or the emerging market ex- China ETF (EMXC).<\/p>\n

This is bigger-picture analysis. These shifts take time to develop so take it all with a dose of skepticism.<\/p>\n

Thanks for reading.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

2022 was the first year since 2016 that value investing thoroughly trounced growth investing. Click on the above table and…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[214,142],"tags":[],"class_list":["post-13883","post","type-post","status-publish","format-standard","hentry","category-international-non-us","category-style-analysis"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/13883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13883"}],"version-history":[{"count":4,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/13883\/revisions"}],"predecessor-version":[{"id":13889,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/13883\/revisions\/13889"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}