Challenging times for value investors

Despite lacklustre performance so far this year, U.S. market is "not cheap" says Beutel's Glenn Fortin.

Sonita Horvitch 20 June, 2018 | 5:00PM

Glenn Fortin, vice-president and U.S. equity specialist at Beutel, Goodman & Co., says that the U.S. market has been focused on growth and momentum stocks, and that this has made it most challenging for value investors. Essentially a bottom-up stock selector, Beutel Goodman uses strict value criteria in making its equity investments.

The broad U.S. equity market, says Fortin, as measured by the S&P 500 Index, has put on a lacklustre showing so far this year. This benchmark index produced a total return of 2% in U.S.-dollar terms from the beginning of the year to the end of May. The technology sector put up the strongest performance over that period, and the consumer discretionary sector also did well.

As modest as the S&P 500 Index's performance has been in the first five months of 2018, he notes, that it is still better than that of the Russell 1,000 Value Index, which had a negative total return of -1.9%. "This index is our benchmark for the performance of U.S. value stocks."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Amazon.com Inc3,184.94 USD-1.00
AutoZone Inc1,178.12 USD-0.04
Baxter International Inc81.74 USD0.74
CVS Health Corp59.23 USD0.51
Facebook Inc A278.73 USD4.17
Harley-Davidson Inc29.18 USD0.76
Kellogg Co65.97 USD-0.42
Omnicom Group Inc51.50 USD0.68
Teradyne Inc92.07 USD4.70
Verizon Communications Inc56.75 USD-0.87

About Author

Sonita Horvitch

Sonita Horvitch  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies