Wes Crill believes the stock market may have already bottomed, according to historical precedence.Crill also warned investors to stay away from alternative assets and trying to time the markets.
Wes Crill, the global head of investment strategists at Dimensional Fund Advisors, which manages $540 billion in assets, agrees with the bears that valuations still remain at lofty levels. But Crill made the important distinction that not all assets are created equally — and said there's still opportunity for returns.
To bolster his bull case, Crill points out that investor sentiment indicators have gotten overextended to the downside — something that last happened to this degree in June 2020, right before a historic bull run. Rather than making money by trying to time the markets, investors following this theory try to outperform by harnessing the diversification benefits of different securities, Crill explained.To any investors who may have missed out on the outperformance of value stocks as they crushed their growth counterparts in the last two years, Crill says not to worry: He believes that value still has room to run.
"We have been bullish on value factor last year, and still see value stocks looking much more interesting than growth ones on a 2-3 year horizon," wrote the strategists, led by Mislav Matejka."The concern is just that they will likely weaken this year, as markets reprice back into a recession scenario, while the bond yields could reflect the risk of central banks' policy mistakes, with continued yield curve inversion.
bottomed for the year?...