This week, Zacks Equity Strategist Mayur Thaker, CFA, discusses:

• An analysis of the Zacks Earnings Certain Core Strategy, and why it offers the ideal foundation for any investor portfolio. In this presentation, Mayur offers the strategy’s investment philosophy, how it is constructed, and why it serves as the ultimate core strategy. Mayur manages the full Earnings Certain Series (which includes the Admiral and Dividend Strategies in addition to the Core Strategy), and his thesis applies to all three Earnings Certain strategies.

• The Earnings Certain Core Strategy includes 60 of the highest-quality companies in the U.S. large-cap equity market. Quality in this context means that these companies exhibit highly durable business models which can withstand recessions, bear markets, and macroeconomic volatility. As long-term compounders, these firms continuously create shareholder value, making them true buy-and-hold investments—ideal for the core of a portfolio.

• The S&P 500’s gains, especially in recent years, have come from multiple expansion, with the index currently above 23x forward P/E. Mayur sees this as unsustainable, and argues that the index’s returns will rotate from multiple expansion to earnings growth—which is right in the wheelhouse of the companies in our strategies. Watch this week’s video to learn more about the Earnings Certain Strategy Series and how recession-resistant, durable moat-protected, low volatility, and steady compounding companies can deliver a powerful core for any investment portfolio.

The views of Mayur Thaker, CFA are not necessarily the views of Zacks Investment Research.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The S&P 500 is an unmanaged index.