Combined Risk and Defensive Strategy for Investors

Investors are faced with the decision, as described in a recent Barron’s article, of whether to “bet big on the bull case—and leave themselves exposed if it doesn’t materialize,” or “position defensively and potentially miss the upside.” The article argues that there are several risks troubling today’s investors, including the questionable probability of success for Trump’s policy agenda as well and political uncertainty. But these are partially offset by domestic economic growth, it argues. According to BMO strategist Brian Belski, says Barron’s, indecisive clients might benefit from a “barbell” portfolio strategy that includes both a risk and a defensive component. […]

Is the Next Peter Lynch or Warren Buffett Waiting in the Wings as Value Emerges

Bloomberg reports on the market shifts toward value as “returning to an era when stock pickers reigned,” drawing on comments by Bank of Montreal’s Brian Belski, who said “it’s a Warren Buffet or Peter Lynch-type world where you buy good companies and stick with them.” As Bloomberg puts it, Belski’s comments reflect that “the current climate recalls the 1980s” when Lynch’s record with Fidelity and Buffet’s success “rose to fame.” The article notes, “an index of value stocks in the [S&P 500] has seen a jump of more than three times that of its growth-oriented counterpart since the start of […]