The last few weeks have given us déjà vu. US growth stocks sold off amidst a surge in interest rates (on inflation worries). This correction reminds us in many ways of the COVID panic selloff that occurred just a year ago.
In March 2020, during the depths of the COVID driven correction, we identified the "patient" (US economy) as being very sick, but not terminally ill. Our advice to investors was to remain calm and leverage the dislocations being offered up by markets to size up their Titan holdings at bargain bin prices.
"We think it's go time for long-term investors. We don't know when a bottom will come, but it will, and our durable portfolio of companies is selling for extremely attractive valuations for long-term investors." - Titan Research (March 2020)
Obviously there is a world of difference between the macro environment of today and March 2020. For one, COVID is generally much more under control now with vaccine distribution ramping up. Last year's selloff also happened before the Federal Reserve stepped in with unprecedented economic stimulus.
However, we think the similarities provide clues into how investors should position their portfolios going forward.
To access the memo, head to the link above.