Are Growth Sectors Technology, Consumer Cyclicals, and Communication Services more Undervalued than Value?

Growth sectors like technology, consumer cyclical, and communications have seen the brunt of the selling this year, and growth is now more “undervalued” than value sectors per CFRA.

According to CFRA: Stocks are ranked in accordance with the following ranking methodologies. Qualitative STARS recommendations are determined and assigned by equity analysts, with 5 being the highest rating.

But as stated in Fundamental Valuation: Is the Stock Market Cheap or Expensive? undervalued stocks can get much more undervalued (prices fall more) in a recessionary bear market.

Risk management is essential in bear markets.

For example, the S&P 500 is down about -23% so far and needs a 30% gain to get back to the prior high.

Mike Shell is the Founder and Chief Investment Officer of Shell Capital Management, LLC, and the portfolio manager of ASYMMETRY® Managed PortfoliosMike Shell and Shell Capital Management, LLC is a registered investment advisor focused on asymmetric risk-reward and absolute return strategies and provides investment advice and portfolio management only to clients with a signed and executed investment management agreement. The observations shared on this website are for general information only and should not be construed as investment advice to buy or sell any security. This information does not suggest in any way that any graph, chart, or formula offered can solely guide an investor as to which securities to buy or sell, or when to buy or sell them. Securities reflected are not intended to represent any client holdings or recommendations made by the firm. In the event any past specific recommendations are referred to inadvertently, a list of all recommendations made by the company within at least the prior one-year period may be furnished upon request. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities on the listAny opinions expressed may change as subsequent conditions change. Please do not make any investment decisions based on such information, as it is not advice and is subject to change without notice. Investing involves risk, including the potential loss of principal an investor must be willing to bear. Past performance is no guarantee of future results. All information and data are deemed reliable but are not guaranteed and should be independently verified. The presence of this website on the Internet shall in no direct or indirect way raise an implication that Shell Capital Management, LLC is offering to sell or soliciting to sell advisory services to residents of any state in which the firm is not registered as an investment advisor. The views and opinions expressed in ASYMMETRY® Observations are those of the authors and do not necessarily reflect the position of Shell Capital Management, LLC. The use of this website is subject to its terms and conditions.