One great way to play the Value rotation
A near-perfect environment for cyclical stocks will unfold over the next year, says L1 Capital’s co-CIO Mark Landau. Alongside depressed share prices and “roaring global GDP,” Landau cites three key areas set to fire.
One of these is the enormous wave of M&A activity that is rolling out over the next 12 months, which he believes is reminiscent of 2007. But this time around, it’s also the value and cyclical stocks that are likely to get the winning bids, “rather than some of those growth names that are on multiples of 50 to 100-times, where it’s much harder to make those numbers stack up for either corporates or private equity."
In the following video, he delves into the other reasons why he believes the next one or two years are the time for cyclical stocks to shine. He also explains why more than half of L1’s net long exposure is in offshore names and reveals one of these standout stocks.
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