Page 23 - DIY Investor Magazine | Issue 30

FIDELITY ASIAN VALUES PLC HAS OUTPERFORMED AGAINST OTHER BENCHMARKS
Past performance is not a guide to the future.
Source: Fidelity International, Refinitiv Eikon Data-stream, 30 June 2021
GROWTH VS VALUE DEBATE The pivot towards growth stocks between 2016-2020 has led to the widest dispersion between growth and value stocks in
So, where do we stand today and what can we expect in the almost 100 years - similar to 1999. future?
WIDENING VALUATIONS IN PE RATIOS OF SMALL-CAP VALUE STOCKS VS LARGE-CAP GROWTH STOCKS
This is not abnormal or inconsistent with history - this is the normal cycle of markets.
As the last 25 years have shown, markets are prone to excesses and depressions - both of which tend to mean revert and correct.
Whether it was predictions in 1999 that the ‘old economy was dead’ or predictions in 2007 of ‘peak oil’, market hyperbole is seldom correct.
There is no reason to believe that this time will be different. We continue to believe that the most time-tested way to preserve and grow capital is to own good businesses run by honest people and buy them at a margin of safety.
23 DIY Investor Magazine | Sept 2021