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Insights from Tom Moran AIF®

Chairman | CEO | CIO Moran Wealth Management®

hen it comes to investing, no strategy – or investor – is In contrast, growth stocks have lost some luster in the current
W high-inflation economy. For example, tech stocks, once the crown
the same. Each portfolio owner has goals specific to
their situation, and their investment strategy should be
jewel of the post-COVID rally, received a pummeling in 2022. This
aligned with those goals. The challenge is that investors’ goals will is because they rely significantly on future cash flow projections;
often shift due to various factors. Life events create new financial those projections become discounted and less valuable as inflation
needs. Market environments can swing drastically from one end of remains elevated and interest rates rise. In comparison, value stocks
the spectrum to the other. When they do, investors should be open are priced according to current cash flows, rendering their valuations
to a modified approach to selecting stocks for their portfolio. less sensitive to external pressure.
Value vs. Growth Investing in 2023
For example, we frequently see the need for investors to Will value stocks remain an attractive option for investors
move away from value stocks to growth stocks and vice versa. in 2023? We believe they will, particularly at this point in the
Unfortunately, these two investment strategies are often pitted economic cycle. Although inflation has started to ease somewhat,
against one another since they generally alternate in performance. value stocks will likely continue to outperform growth stocks until
While value stocks often provide better returns in down markets, inflation drops closer to the Federal Reserve’s target of 2%.
growth stocks usually offer better results in periods of economic The biggest challenge for many individual investors is
and market expansion. recognizing when it’s time to pursue a new investing strategy.
During the bull market of the 2010s, value stocks fell out Fortunately, we can help. Our team of experienced investment
of favor as investors chased higher returns from growth stocks. planners can help you review your portfolio to ensure you’re
However, investor interest in value stocks has risen in the past two selecting stocks to help meet your goals.
years. What has spurred this resurrection? Fundamental metrics
such as low price-to-earnings ratios, low price-to-book values, and This article contains general information that is not suitable for everyone and was prepared
for informational purposes only. Nothing contained herein should be construed as a
high dividend yields make value stocks more attractive to investors, solicitation to buy or sell any security or as an offer to provide investment advice.
who purchase value stocks expecting valuations – and share prices
Moran Wealth Management®, LLC is a registered investment adviser. For additional
– to increase as the broader market improves.
information about Moran Wealth Management®, LLC, including its services and fees,
request the firm’s disclosure brochure using the contact information above or visit adviserinfo.
sec.gov
Moran Wealth Management® is a separate entity and not affiliated with any other entity or
practice that uses the same name.

www.Thomas.Moran@MoranWM.com
Tom Moran Phone: 239.920.4440 www.MoranWM.com
AIF® Chairman, CEO, CIO Moran Wealth Management® Fax: 239.431.5239 5801 Pelican Bay Blvd, Suite 110,
Naples, FL 34108

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). Moran Wealth Management is a separate entity from WFAFN. 1221-04126
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