IITSF - Bill Nygren Market Commentary - Q1 2021

• On March 23, 2021, the S&P 500 recorded its largest one-year price increase in the past 85 years, 75%. And just a few days earlier, on March 18, the Oakmark Fund recorded its largest ever one-year increase of 113%.
• Following a painful four years for value investors, we’ve finally had two consecutive quarters where value has outperformed growth, the first time in more than four years.
• The two-quarter outperformance of value has done very little to change that. Low P/E stocks remain priced at historically large discounts to high-growth stocks.
• Importantly, as we continue to rethink our assumptions, the window for the return to normal is narrowing. Last year, as the disease progressed, the debate became which year would finally be normal again. Now, it’s which quarter. That’s progress.

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