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Global equities closed strongly in 2025, despite concerns about trade tariffs, geopolitical tensions, and whether a small group of growth stocks has gotten ahead of itself.
Especially in that climate, value stocks are attractive, as also seen in the results of 2025.
In our most recent quarterly report, we demonstrate that conditions are exceptionally favorable for value investors:
Valuations are attractive. Many strong companies are still trading at significant discounts compared to historical averages.
Earnings growth is broadening quickly, with more sectors and regions contributing to earnings growth instead of just a handful of megacaps. That is typical at the beginning of a sustainable, broad market upturn.
European stocks play a leading role. In 2025, they performed better than their American counterparts, with low valuations, a broader earnings profile, and less concentration risk. Historically, after strong years followed by a positive January, European markets tend to perform well on average. An encouraging sign for 2026!
In a market where growth stocks have become extremely expensive, attractive valuations are returning. Exactly the right timing for disciplined value investing.
Of course, there are always risks. Rising commodity prices and interest rates can pressure margins. The S&P 500 is historically expensive, trading at about 23 times earnings. We avoid vulnerable growth favorites and opt for solid balance sheets, stable cash flows, and independent growers.
In these kinds of times, with good prospects for value, it is wise to invest according to an approach with a proven strategy.
