RICHARD BERNSTEIN EXPLAINS WHY THE MARKET LEADERSHIP SHIFT TO CYCLICAL & VALUE STOCKS IS DURABLE

March 19, 2021

Part 1 of 2
It doesn’t take a rocket scientist to figure out that 2021 is a year of significant political and macroeconomic change.

Meanwhile, the rollout of COVID vaccines is starting to unleash a year’s worth of pent-up consumer and business demand.

That demand is also putting upward pressure on prices and inflation expectations. Those pressures are showing up in the bond market where yields on long-term bonds, the most sensitive to rising inflation expectations are rising. The price of 30-year Treasurys has fallen 15.6% in just three months.

This is a huge change and could signal the end of the 40-year bull market in bonds that many Wall Street pros have been predicting for years. Perhaps they will now be proven right.

This week’s guest has been telling clients that inflation will probably be higher than many believe, that a significant cyclical recovery is in the works and is bringing with it a major change in market leadership.

He is a noted investment strategist known for his macro analysis and thematic investing. He is Richard Bernstein, Chief Executive and Chief Investment Officer of Richard Bernstein Advisors,

Bernstein explains why the shift in market leadership from stable growth stocks to cyclical value ones is normal and durable, and how to participate.

WEALTHTRACK Episode #1738; Originally Broadcast on March 19, 2021

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RICHARD BERNSTEIN


MAKE SURE YOU OWN SOME SMALL-CAP VALUE STOCKS

  • Small-Cap Value Stocks Have Lagged Large-Cap Growth for Over a Decade
  • Many Small-Cap Value Companies Are Truly Undervalued by Every Traditional Measure
  • Bernstein Uses Ishares Russell 2000 Value Etf for Small-Cap Value Participation

MORNINGSTAR’S GOLD RATED ETF:
VANGUARD SMALL-CAP VALUE ETF (VBR)

MORNINGSTAR’S GOLD RATED MUTUAL FUNDS:
VANGUARD SMALL- CAP VALUE INDEX (VSIIX)

BOSTON PARTNERS SMALL-CAP VALUE INDEX (BPSIX)

No Bookshelf titles this week.


ALL-TIME FAVORITE

BUY SMALL-CAP VALUE STOCKS

  • OUT OF FAVOR
  • LONG TERM OUTPERFORMANCE
  • DO WELL DURING CYCLICAL UPTURNS


No stock mentions in this episode.

Richard Bernstein from the WEALTHTRACK Archives:





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PANDEMIC EFFECT

Richard Bernstein reflects on how the COVID experience has changed his professional and personal life.

[box type=”shadow”]In Part 2: Speculation is rampant in today’s markets. Influential strategist Richard Bernstein explains why it is a money-losing proposition and which investment strategies have proven their worth over time. Watch it now.


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