Thomas Pence, CFA, and Michael Smith, CFA of Wells Capital Management's Fundamental Growth Equity team are out with their year-end thoughts on where growth can be found in a difficult economy.
As recently as two months ago, some economists and investors feared that the global economy was on the brink of collapse. With the year winding down, it now appears that those fears may have been exaggerated. However, while the economy may avoid another recession, growth is unlikely to accelerate dramatically in the coming months.
As we enter the later stages of the current economic cycle, companies that can consistently generate robust sales growth may become increasingly scarce—and therefore, more valuable. We believe that some of the most successful growth companies will be those that can drive organic sales growth through innovation. By selectively favoring such companies, investors may be well positioned to navigate the period ahead.
Read the full post here (pdf) and feel free to leave your comments below.