Finance / finance (FIN)

Dr. George Athanassakos Professor of Finance Ben Graham Chair in Value Investing Western University

Join Dr. George Athanassakos as he argues that the hefty average nominal and real stock returns experienced over the last 30 years are not going to be repeated, or even come close to, in the next 30 years. Profit margins will be eroded going forward. Inflation will also be higher than what prevailed the last 30 years and so are 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.

Sponsored by The Douglas C. Mackay Chair in Finance at Dalhousie University