The shift of the market towards value investing has been well documented. With falling global macro indicators and geopolitical concerns on the rise, the market’s appetite for high-growth/high-PE stories has diminished. This void has been replaced with the perceived safety of cheap stocks – the idea being if the market does have a pullback, then at current prices these have less to fall.

As money managers, our view on this line of thinking is that it is flawed and short-sighted. In no way does it support our belief in the best way to accumulate sustainable wealth over the long term. We encourage investors not to be lured into the fastest moving lane of investing traffic but instead to stick with strategies that are proven to work through many different cycles.