During his recent interview with Van Eck, Vitaliy Katsenelson explains why it will be much more rewarding to be a value investor as common sense comes back to markets. Here’s an excerpt from the interview:
Katsenelson: Well, I think we see a lot fewer fads now than we did eight months ago. I tell you this high interest rates very cleansing to one’s imagination and I think we had… like eight months ago or last November, almost a year ago now the imagination was running wild and fads were running wild.
Now I think the fads, a lot of fads have been kind of deflated already but I think the valuation of which we consider to be quality companies, the likes of, I don’t know, Kimberly Clark’s, Coke’s etcetera. I think that’s the last castle to collapse.
I think the valuation will reset, the new, the new normal valuations will come back to be teens, not twenties.
Host: To more historical relationships.
Host: So is value investing back, value over growth?
Katsenelson: Yeah though, I think the, I think last, you know, being a value investor last 10, 12 years was not a fun place to be, and I think the… as common sense come back to the markets again, I think it’s going to be much easier to be a value investor. Much more rewarding as well.
You can watch the entire discussion here:
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