“Investing should be more like watching paint dry or grass grow. If you want excitement, take $800 and go to Las Vegas.” — Paul Samuelson, Nobel Prize winning economist
Before writing these quarterly commentaries, I always reread my most recent editions. Unfortunately, much of what I wrote last quarter still applies. Through June 30, our U.S. value equity strategy has been essentially flat for the year, trailing double-digit gains for both the S&P 500 and the Russell 1000 Value Index. As in the first quarter, index returns were driven by a sector we don’t own—a small group of high price-to-earnings (P/E), cyclical technology companies, currently benefiting from increased AI spending. Here is a list of the year-to-date top performers in the Russell 1000 Value Index,…
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The price-to-earnings ratio (“P/E”) compares a company’s current share price to its per-share earnings. It may also be known as the “price multiple” or “earnings multiple”, and gives a general indication of how expensive or cheap a stock is. Investors should not base investment decisions on any single attribute or characteristic data point.
The S&P 500 Index is a float-adjusted, capitalization-weighted index of 500 U.S. large-capitalization stocks representing all major industries. It is a widely recognized index of broad, U.S. equity market performance. Returns reflect the reinvestment of dividends. This index is unmanaged and investors cannot invest directly in this index.
The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000® companies with lower price-to-book ratios and lower expected growth values. This index is unmanaged and investors cannot invest directly in this index.
Investing involves risk including potential loss of principal. There can be no guarantee that an investment will achieve its objectives or provide positive performance over any period of time. Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.
