As life returns to normal, we expect that stocks invested in the “real economy” (such as transportation, materials, and oil & gas, to name a few) will rebound. Letko Brosseau’s “real economy” stocks are currently trading at 10.4x 2022 earnings, a 38% discount when compared to the MSCI World Index.
Source: Bloomberg and LBA calculations as of January 31, 2021, Letko Brosseau International Equity Fund
We invest in stock categories that are expected to continue to rise in tandem with long-term trends. These sectors include artificial intelligence, the internet of things, automation, infrastructure needs in the developing world, and the aging population.
Over 85% of the world’s population lives in emerging markets where the level of unmet needs is tremendous (as is the potential for great returns) in areas such as health care, infrastructure, utilities, and more. Over the past ten years, emerging markets have been growing at 3x the rate of developed markets. As it has done for more than 20 years, Letko Brosseau will continue to be actively involved in emerging markets.
Letko Brosseau will continue to optimize its clients’ portfolios while avoiding investments that have a disproportionately high yield and risk profile, a lack of transparency, and low liquidity.
Start a conversation with one of our Directors, Investment Services, a Letko Brosseau Partner who is experienced at working with high net worth private clients.