Staying invested in equities during market highs

By William C. Nygren, CFA®

Navigating market highs and avoiding equity value gaps

Bill Nygren, Portfolio Manager for Harris Associates, adviser to the Oakmark Funds, discusses growth stocks outperforming value stocks at the start of 2024, and why selling stocks during periods of all-time highs is not a wise strategy.

Bill Nygren, Portfolio Manager for Harris Associates, adviser to the Oakmark Funds, discusses growth stocks outperforming value stocks at the start of 2024. He also explains why selling equities during periods of all-time highs may not be the best course of action for long-term investors. Hear his perspective on:
  • Why growth stocks continued to outperform value stocks in Q1 and how he is navigating this environment as a value investor.
  • Even though markets recently saw all-time highs, why investors should not immediately sell equity positions to capture gains.
  • How historical analysis shows why a buy-and-hold strategy continually comes out ahead, rather than selling stocks during periods of all-time highs.
The information, data, analyses, and opinions presented herein (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) are for informational purposes only and represent the investments and views of the portfolio managers and Harris Associates L.P. as of April 17, 2024 and are subject to change and may change based on market and other conditions and without notice. This content is not a recommendation of or an offer to buy or sell a security and is not warranted to be correct, complete or accurate.

There can be no assurance that developments will transpire as forecasted. Actual results may vary.

Investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

Investing in value stocks presents the risk that value stocks may fall out of favor with investors and underperform growth stocks during given periods.

The S&P 500 Total Return Index is a float-adjusted, capitalization-weighted index of 500 US large-capitalization stocks representing all major industries. It is a widely recognized index of broad, US equity market performance. Returns reflect the reinvestment of dividends. This index is unmanaged and investors cannot invest directly in this index.

The Russell 1000® Value Index measures the performance of the large-cap value segment of the US equity universe. It includes those Russell 1000® companies with lower price-to-book ratios and lower expected growth values. This index is unmanaged and investors cannot invest directly in this index.

The Russell 1000® Growth Index is an unmanaged index that measures the performance of the large-cap growth segment of the US equity universe. It includes those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values.

The Price to Book Ratio is a stock’s capitalization divided by its book value.

The price to earnings ratio (“P/E”) compares a company's current share price to its per-share earnings. It may also be known as the "price multiple" or "earnings multiple" and gives a general indication of how expensive or cheap a stock is. Investors should not base investment decisions on any single attribute or characteristic data point.

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