I often speak of the “battle” between growth and value investing, and the fact that each will lead at different times. In 1999 investors paid huge premiums for companies growing at 30% or more without a care for their actual earnings, or any dividends being paid. In 2011 a company’s ability to grow took a back seat to high dividends and sustainable earnings. We all know what happened to those high flying companies a decade ago, and need to be aware of the risks associated with chasing the ‘value’ names today. This is not to suggest that a change in eminent, only to be a reminder that it will eventually come. Companies like Suncor Energy (SU-T) have exceptional balance sheets and trade at very low historical valuations…but are ignored due to their low dividends and focus on future growth.
** I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone, and may not reflect the views of National Bank Financial Group. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by the Research Department of National Bank Financial **