Entries by Brian Foerster

    2017: For U.S. Equities, Time to Get Small, Cyclical, and Active

    November 21, 2016 3:50 PM by Brian Foerster

    Economically sensitive sectors should lead the market higher, while small- and mid-cap stocks are finally poised to outpace mega-caps.

    Elections have consequences, and that has been profoundly true this past year. The United Kingdom’s referendum vote in June to leave the European Union (“Brexit”) recalibrated global growth expectations as a result of potentially slower growth in the United Kingdom. Its impact won’t be known until Article 50 of the Lisbon treaty (which sets out how an EU member might voluntarily leave the union) is invoked in 2017, ushering in a host of risks around trade, economic growth, and the political effects on the EU. 

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    What “Brexit” Means for Growth Stocks

    June 29, 2016 3:05 PM by Brian Foerster

    The United Kingdom’s decision to leave the European Union may be a game changer, but top-performing companies in select industries should continue to generate growth.

    As investors scrambled for insights into long-term implications of last week’s “Brexit” vote, Lord Abbett’s small-cap growth investing team took the following view:  

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    The Growth Investor: Lessons from the Valeant Struggle

    March 24, 2016 11:10 AM by Brian Foerster

    Astute technical analysis could have saved some investors in this former high-flyer a lot of pain.

    (The first in a periodic series of blogs on growth investing.)

    For many investors, nothing captures their imagination like growth stocks, especially those of companies that disrupt the established order with transformative innovation the world has never seen before, or simply products, services, or technologies that are faster, better, and cheaper.

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    Trying to Predict the Market? Tune Out the Equity Strategists!

    November 4, 2014 11:50 AM by Brian Foerster

    Even before the recent pullback, the market was lagging the growth in earnings. 

    Volatility has returned to the stock market, causing concern in some quarters. But this seems to be an overreaction, given the relative strength of the U.S. economy and the fact that even at the recent low of 1,862 in mid-October the S&P 500® Index was still slightly up for the year. Since then, it has rebounded to a new high. (Although, due to market volatility, the market may not perform in a similar manner in the future.)

    More important, investors need to view the recent volatility in a longer-term context. Two key statistics are worth noting: 1) annualized return and 2) average earnings growth.

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