Institutional portfolio manager Naveed Rahman observes that markets saw a bit of a bounce-back for value toward the end of 2020 and the beginning of 2021. He believes that opportunities are compelling for reasonably priced companies with high ROEs that have potential to deliver attractive returns. Overall, he remains optimistic about value and quality stocks. Also, Naveed believes that given the combination of massive fiscal stimulus (especially in the U.S.) and the deployment of various approved vaccines around the world, the market is now focusing on what the economy will look like in a post–COVID-19 world. He thinks we will see a sharp snapback. Not only does the vaccine allow us to get back out there, but middle-class consumers have also built up massive amounts of savings, which is unusual coming out of a recession. As a result, he believes that economic growth could be robust in the second half of this year and going into 2022.
Recorded on February 25, 2021.