INVESTMENT COMMENTARY & Outlook

January 2022

As 2022 has commenced, a rotational correction out of many powerful growth stocks into beaten up value stocks has been the New Year surprise. This is referred to as a “mean reversion rally” and will not be sustainable. In fact, most value rallies fizzle within four to six weeks. This time around, the initial weakness in NASDAQ this year caused CNBC’s Jim Cramer to tell investors to sell growth and buy value stocks. So far this year, energy and financial stocks have been the leaders. However, the biggest problem we have with Jim Cramer’s value declaration is that it will soon be “every stock for itself” when the fourth-quarter announcement season commences.

Fortunately, the fourth-quarter announcement season has arrived and we have already seen relative strength in our dividend growth stocks and well as many of our growth stocks. So we remain confident that, in the wake of wave after wave of better than expected quarterly sales and earnings announcements, our fundamentally superior stocks …

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