Today, we are finding opportunities outside the US that are at valuation extremes. Many of these firms are sensitive to the economic cycle and are weighed down by concerns that COVID-19 will persist, unemployment will remain high, interest rates and inflation will stay low, and/or dividends will not be restored in certain sectors. Given how poor sentiment is, positive news on these issues can provide much-needed reprieve to these stocks. Ultimately, we believe relative price follows relative earnings and, for many of these stocks, prices have dramatically underperformed earnings. We therefore expect a recovery in prices and, in particular, see opportunities in energy, banks, and other cyclicals.
Important Risks: Investing involves risk, including the possible loss of principal.