Commentary

Market Leadership Shifted as Investors Gained Confidence in a Post-Covid Economic Rebound

Within the growth-vs.-value context, we’d like to discuss three Covid-related scenarios for companies.

Webinar

Technology is the New Oil: The Changing Nature of Emerging Markets

A variety of macro and fundamental factors are converging in emerging markets, signaling a period of resurgence. We believe structural changes, a supportive investment environment, and dynamic geopolitical influences make EM particularly attractive right now. For example, semiconductor production could soon become more critical to EM growth than commodities. Now may prove to be an inflection point, especially for portfolios focused on capturing this dynamic change. Please join us for an interactive webinar highlighting EM's changing nature and the added value of active management.

Commentary

Technology’s Rising Importance in Emerging Markets

Whereas commodity production had been a major economic driver in emerging markets, we think technology is now the leading force. Semiconductor advancement is the “new oil.” semiconductor companies are so far ahead of their competitors that supply is in fact a constraint—and therefore a major investment consideration.

Commentary

Wasatch Market Scout: Our Thoughts on Stock Valuations

If we do a good job of investing in high-quality companies with the potential for strong, long-duration earnings growth, we think starting valuations will matter less in generating attractive long-term performance. When we invest in a company with a high P/E ratio today, we don’t do so with the expectation the ratio will stay high indefinitely.

Commentary

Market Scout - International and Emerging Markets Opportunities

High-quality companies outside the U.S. look especially attractive to us. And their stocks have underperformed recently, possibly giving them greater upside potential.

Commentary

Opportunities Outside the U.S.

Even after the partial rebound from COVID-related losses, we think high-quality companies in certain developed and emerging markets remain compelling investments. High-quality companies outside the U.S. look especially attractive to us.

Commentary

U.S. Small Caps After a Downturn: Stock Declines in Early 2020 Likely Created Attractive Valuations

To get a handle on the state of U.S. small caps after the pandemic-induced losses in early 2020, we ask: How did the U.S. small-cap group perform relative to other market-cap groups during the several years through 2019? How did they perform during the downturn...

Commentary

Market Scout – Trusting Our Instruments and Covid-19 Update

Like a pilot relying on a plane’s flight-control instruments during an unfamiliar route with poor visibility, we are depending more than ever on our fact-based, unemotional investment methods. The overwhelming majority of our investments are in companies that we believe are built to withstand harsh economic shocks. Only on the margin have we slightly increased our trading activity.

Commentary

Wasatch Market Scout: Our Take on Emerging Markets—“Don’t Stop Believin’”

Four reasons for optimism about emerging-market stocks despite their general underperformance and higher volatility over the last decade.

Commentary

Staying Humble, Focused on the Long Term

Although the relative performance of the Wasatch investment strategies was mixed during the third quarter — some strategies were a bit ahead of their benchmarks and some were a bit behind— the 2019 year-to-date and longer-term results (i.e., five years) have been exceptional across most of our strategies.

Commentary

Innovation in an Age of Uncertainty

We often get a sense of the relative uniformity in financial-market performance by looking at the indexes shown on Morningstar.com. Of the 145 stock, bond, target and commodity indexes, 131 were positive and 14 were negative for the second quarter of 2019.

Commentary

Great Companies Persist and Find Ways to Win Over the Long Term

We recently heard a great adage about investing: “The stock market is the only market where people head for the exit when things go on sale.” And considering what followed 2018’s stock-market rout, heading for the exit certainly wasn’t a wise move.

Commentary

How the Mighty Have Fallen

Although the FAANGs were the poster children of the fourth-quarter market rout, losses were broad-based across sectors and countries. These losses were strong reminders of how important it is to pay attention to a company’s stock price in addition to focusing on its fundamentals and long-term growth prospects.

Commentary

2018 Q2: Deja Vu Squared

In the title of his quarterly message at the beginning of this year, our outgoing president Sam Stewart referred to a popular rumination of baseball legend Yogi Berra: Seems Like Déjà Vu, All Over Again.

Commentary

When a 12 Year Old Asks if You Watch Cramer

With Market Indices at or Close to All-Time Highs, Investors Puzzle Over the Course Ahead. Meanwhile, The Slow-Growth Economy Is Perceived as the New "Goldilocks Scenario."