Contrarian Bets in Value Stocks, Small Caps, and Select Sectors Recommended as Markets Face Shift
• US stock market trading at a slight premium to fair value; value stocks and small caps remain most undervalued
• What's worked the past 18 months unlikely to continue working; time for contrarian bets
• Expect a soft landing; declining interest rates positive for value stocks and small caps
• Real estate, utilities, energy offer contrarian undervalued opportunities
• Corporate credit spreads too tight given economic outlook; underweight corporate bonds