Owning More Value Stocks Makes Sense: Mona Mahajan

The video discusses the historical and current issues of European exposure and US index compromise, highlighting the potential for leadership change. It explores the value versus growth investment debate, noting that growth outperformed post-financial crisis due to low Fed funds rates. Looking ahead, the video suggests a balanced approach between value and growth investments, considering the unlikely return to zero-bound interest rates. It emphasizes the importance of a balanced index in the US and the potential for growth to rebound in the short term.

What was the initial concern discussed regarding Europe?

• Political instability

• Exposure issues

• Currency fluctuations

• Economic growth

What was a key reason for growth outperforming value in the decade after the financial crisis?

• Low Fed funds rates

• Strong dollar value

• Increased government spending

• High inflation rates

What is the expected trend for the Fed's terminal rate in the future?

• Remain constant at 5%

• Return to a more normal level

• Decrease to zero

• Increase to 10%

What is the potential scenario for growth in the next 12 months?

• Rapid acceleration

• Stagnation

• A possible bounce back

• A significant decline

Why is having a balanced index in the U.S. considered beneficial?

• It ensures more value in portfolios

• It focuses solely on growth

• It increases short-term gains

• It reduces risk