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The stock market has been experiencing a notable rotation from growth to value stocks, which has recently gained momentum. The rotation is characterized by investors moving away from high-flying, richly valued growth stocks, particularly in the technology sector, which has dominated market performance in recent years, toward undervalued/stable value stocks. This rotation has been significant, reflecting a broader investor preference for companies with solid fundamentals and attractive valuations. Technology stocks have dropped over 5% in 2025, while value sectors like materials, financials, and healthcare have seen renewed investor interest. Many individual stocks in the technology sector are 10% to 20% off their recent highs.
A confluence of factors is driving the rotation. First, the valuations of growth stocks, especially mega-cap tech names like Apple and Nvidia, are stretched after years of outperformance. In contrast, value stocks appear more attractively priced, offering a margin of safety amid economic uncertainty. Second, policy shifts influenced market sentiment, including the Trump administration’s tariff implementations on major trading partners like Canada, Mexico, and China. This has led to a more than 4% decline in the S&P 500 index since the start of 2025, with volatility rising as investors reassess growth prospects. Third, expectations of Federal Reserve rate cuts and a resilient yet cooling U.S. economy have bolstered the case for value stocks. Value stocks tend to perform better in higher-rate environments due to their lower sensitivity to interest rate changes.
At PracticeCFO, we take a value-based investing approach by prioritizing undervalued assets with strong fundamentals to deliver long-term growth and stability for our clients. As a result, our portfolios are underweight technology and overweight the value-orientated sectors that have outperformed in 2025. Avoiding overhyped growth stocks with inflated valuations has worked well to start 2025. Additionally, international stocks have significantly outperformed U.S. stocks year to date, leading to diversified portfolio outperformance. As U.S. markets faced volatility from tariff policies and a technology sector correction, international markets surged, especially in Europe and emerging economies. PracticeCFO’s globally diversified portfolios capitalized on these trends, outperforming U.S.-centric growth portfolios. Value stocks and international equities delivered stability and upside amidst a shifting economic landscape.
Wes knows what's best for dental practices. He's been doing this for a long time and he sees lots of practices. He can tell me how our practice is doing, and what we can do to increase our productivity. With past CPA's, there were no ideas. It was all coming from me, saying "I think I can do better, but I don't know how." I come in to meet with Wes and he says "You CAN do better, and I know how."
PracticeCFO is in hundreds of dental offices around the country. They know what numbers should look like. They know what percentages of payroll, rent and supplies should be, and they will hold you accountable to those numbers, which will really help you stick to your plan and your path of growth and savings. That is invaluable
Whenever something comes up, whether it's building or practice related and we weren't sure where the numbers would go, PracticeCFO has been instrumental in helping us figure that out. I can't say enough of how important that is - that it goes beyond that initial partnership. They make sure this business marriage works.
When I go home from work, I don't spend a whole lot of time stressing about what my books look like, or how much I owe in taxes. By using PracticeCFO, the burden of keeping track of a lot of the big financial numbers and metrics are taken off my plate.
PracticeCFO helped me develop a plan for the future. I have colleagues that work with other accountants that don't have a plan - they just look at the numbers of the practice and that's it. There's no plan for 10, 20 years from now. But with PracticeCFO, you get that. PracticeCFO makes you feel like you're they're only client.
(In reference to his practice sale) What could've been super stressful, wasn't! When picking John and Wes, it was from word of mouth recommendations and other people's experiences from the past that really did it for me. And it turns out that those recommendations were right on the line.
Wes knows the business side of dentistry. His comprehensive plan will organize your personal and professional finances so you can focus on taking care of patients. Massive ROI.
I can’t say enough good things about everyone at PracticeCFO. Everyone on the team is professional, organized, knowledgeable, helpful and kind. They also respond to emails and phone calls immediately and are always happy to help. They have helped me navigate year-to-year as a business owner. PracticeCFO gives me peace of mind that my business is in good hands.
I love Practice CFO! They have helped me obtain a practice and maintain a practice. They are incredible people who are on top of everything and make owning and running the business portion of a practice easy. They couldn’t be better for my business and my sanity. They have every detail of the business and taxes taken care of where all I have to do is show up and follow their easy steps to success!
Practice CFO has the best tools I’ve seen for personal tax and financial planning in addition to top-tier corporate tax and accounting services. I have been very pleased with the level of quality service. They manage my monthly bookkeeping and accounts payable. It is a great system and saves me a ton of time, and it allows us to have monthly financial statements within a week of month end.
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