Thursday, November 2, 2023 | 12:00 PM to 1:00 PM
In this virtual event, Dr. George Athanassakos, founder and managing director of The Ben Graham Centre for Value Investing and the Ben Graham Chair in Value Investing at the Ivey Business School, argues that the hefty average nominal and real stock returns experienced over the last 30 years are not going to be repeated in the next 30 years. Profit margins will be eroded going forward. Inflation will also be higher than what prevailed in the past 30 years and so are nominal interest rates—due to both higher inflation and higher real interest rates.
The effect of higher interest rates on stocks along with the erosion of profit margins will be predictably negative in contrast to the positive effect that lower interest rates and higher profit margins had on stocks over the last 30 years. The stock price of companies that enjoyed the fattest profit margins and benefited the most from low interest rates over that period, i.e., growth stocks, will face pressure. Value will outperform growth. Riding the ETF bandwagon will not work. Stock picking and fundamental analysis will be key to outperformance.
About the Speaker
Dr. George Athanassakos is a professor of finance and the Ben Graham Chair in Value Investing at the Ivey Business School, which he joined in July 2004. He is also the founder and managing director of The Ben Graham Centre for Value Investing, which he launched in 2006, and the founder and managing director of the Center for the Advancement of Value Investing Education, which he launched in 2008.
Dr. Athanassakos has written for numerous publications and is currently a guest columnist for The Globe and Mail, Canada's largest daily newspaper, where he writes about investments and economic and financial topics. His books include Derivatives Fundamentals, Equity Valuation: A Guide to Discounted Cash Flow and Relative Valuation Methods and Value Investing: From Theory to Practice – A Guide to the Value Investing Process.
