Much like when the tech bubble burst in March of 2000, there has been a mad dash to sell the overpriced high-tech favorites in the trading sessions since Election Day. Simultaneously, investors are quickly trying to rectify the underinvestment in economically sensitive shares of financial service companies, consumer discretionary shares and recently reviled healthcare shares.
As long-duration owners of high quality companies priced at a big discount to the S&P 500 Index, we relish the future. Our vision of a much stronger economy over the next ten years has been reinforced by the change in leadership and power in the federal government. If the demographics play out as we expect, Trump could be very “lucky” like President Reagan, and leave office with some “honor and glory.”
William Smead is CEO and chief investment officer at Smead Capital Management.