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Looking for a compass in an economic storm

Many of the popular investment strategies over the last cycle have involved buying securities based on how their price action correlates with others, rather than on how their price relates to the value of the firm. A focus on fundamental value may prove an effective true north in the coming cycle.


FEW investors are looking forward to 2019. The volatility that we have experienced in markets over the latter part of 2018 and the overwhelming sense that we are late-cycle in terms of both the global economy and the post-crisis boom in asset prices have combined to create a...