In his recent interview with CNBC, John Rogers explained why 2022 will be a great year for value. Here’s an excerpt from the interview:
Rogers: I feel strongly that 2022 is really going to be a great great year for value, and these large tech stocks have had their run the last 12 years. They have some spikes here recently, but we really do believe strongly that higher interest rates are going to cause these very expensive technology companies to really have a significant downturn in 2022.
Host: But what are those higher interest rates going to do John for the economy? A lot of people worry about that and the fact that it’s been so boosted by fiscal and monetary stimulus. When that goes away it’ll hurt and value can’t really work in that environment either.
Rogers: Well I think we’re going to be fine. I think the economy is still quite strong. I was just on the phone with the CEO of a large industrial company, he was saying how good business is and we’re out there talking to our management teams, and people say the momentum is continuing.
So I think the higher rates will not be enough to slow down this economic recovery and again these undervalued stocks that are selling at single-digit PEs often selling at such a discount to the S&P are well positioned to do extraordinarily well.
You can watch the entire interview here:
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