Stick With Value Stocks, Covered Calls in Slippery Market

February 2016

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A handful of high momentum growth names kept the averages in flat to slightly positive territory last year. Nevertheless, value stocks have taken the lead over growth in the past month likely won’t look back, said Jesse Clinton, managing director at Snowden Lane Partners. ‘There was a thirst for growth because the economy was and is seen as slowing, so the growth opportunities stories became sought out but that has already reversed,’ said Clinton. ‘What has lead us into this correction has been tech and stocks with international exposure. History shows that the sectors that lead us into these corrections often do not lead us out.’ Clinton did add that if an investors truly wants to be in a high growth technology name then cyber security is the sub-sector with the most upside. Clinton said he plans to stick to ‘all-weather stocks’ that he defines as being ‘under loved’ and pay a nice dividend. For example, he said he is legging into some financial stocks that have slipped this year.

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