Instead, investors spent the year shifting from growth to value stocks in an attempt to seek a safe haven. This adjustment has reshuffled the valuations of stocks in various sectors.
One thing to note is that it may take a while before stocks recover. A December 31 note from Morningstar forecasts two more rate hikes coming down the pipeline, both anticipated in the first half of the year. The Federal Reserve is then expected to ease its monetary policy, which would lead to a rebound in the stock market.
"What we are doing is trying to provide investors with good opportunities where we see significant undervaluation. Where we think the market is not accurately pricing in what the long-term value of a company is," Sekera said.
How do we know if this tweet is a pump and dump?