- Opportunity to add to stocks unduly punished in the downturn
- Longer-term potential in value-oriented strategies
- U.S. stocks holding an edge across global asset classes
Market overview and outlook
A confluence of negative factors set U.S. stocks up for a difficult start to 2022, with the S&P 500 recording its worst January since 2009 and officially hitting correction territory (a 10%+ decline) in February. Growth-oriented stocks were at the epicenter of the pain amid fears of rising rates and a slowing economy.
We see both a short- and longer-term opportunity taking shape. In the near-term, we believe indiscriminate selling has created attractive entry points, particularly into some high-growth-potential stocks. At the same time, we believe investors should prepare for a longer-run regime shift as the once familiar slow-growth, low-rate environment transitions to a new world order that may warrant greater selectivity and a rebalance toward value.
“The virtues of an active approach to both stock selection and risk management can be most evident at times of significant market disruption.”