Відео

Sorry for the delay in coming back to you. I missed this comment. During the COVID-19 pandemic, many stocks underwent a dramatic shift in how they were perceived by investors. This was encapsulated in the phrase "growth stock turned to value stock in pandemic." Before the pandemic, numerous companies, especially in sectors like technology, e-commerce, and certain consumer services, were considered high-flying growth stocks. Investors valued these companies based on their potential for rapid future growth, often accepting high price-to-earnings ratios. However, when COVID-19 hit in early 2020, it caused unprecedented disruptions: Economic uncertainty: Lockdowns and health concerns led to a sharp economic downturn, causing investors to reassess growth projections for many companies. Changing consumer behavior: Stay-at-home orders dramatically altered how people lived, worked, and spent money. This benefited some businesses but severely impacted others. Market volatility: The pandemic triggered extreme stock market volatility, leading to a flight to safety among many investors. As a result, many former growth stocks saw their valuations plummet. Companies in sectors like travel, hospitality, traditional retail, and entertainment were hit particularly hard. Their stock prices fell sharply, and their future growth prospects became uncertain. This decline in stock prices, coupled with reduced growth expectations, meant that some of these stocks began to exhibit characteristics more commonly associated with value stocks: Lower price-to-earnings ratios Prices below book value Potentially attractive dividend yields (for those that maintained dividends) For example, a high-flying airline stock that was previously valued for its expansion plans and growing market share might have seen its stock price drop so low that it began to look like a potential bargain to value investors, especially if they believed in its eventual recovery post-pandemic. This shift highlighted the pandemic's profound impact on the market, demonstrating how quickly investor sentiment and stock valuations can change in response to major global events.

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Omar - thx for the question, I ran Global Fundamental Analytics at UBS. We sat in Economics and Strategy: Valuation. We led this category for 8 years. I was ESG once in 2018 - I came #1 in that category as well.