Four reasons why value stocks are poised to outperform growth in 2022 — and 14 stocks to consider

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 97%

Brasil Notícia Notícia

Brasil Últimas Notícias,Brasil Manchetes

OPINION: Inflation and interest rates tend to rise during economic rebounds. Both trends are a negative for growth stocks relative to value, columnist mbrushstocks writes.

Investing is all about being in tune with the trends. Here’s one to be aware of for 2022: Value stocks will most likely beat their growth counterparts.* The Vanguard S&P 500 Growth Index exchange traded fund VOOG, +0.29% is down 5.6% year to date, while the Vanguard S&P 500 Value Index fund VOOV, -0.22% is flat.

So naturally, when 10-year yields rise as they are now, expensive stocks in areas like tech underperform the cheapest stocks in areas like cyclicals, financials and energy, points RBC Capital Markets strategist Lori Calvasina. Here’s a chart from RBC Capital Markets showing that value historically outperforms as yields rise. The light blue line represents bond yields, and the dark blue line represents cheap stock performance relative to expensive stocks.

In contrast, growth names are characterized by expected earnings, so they benefit less from price hikes. 4. Value stocks do better when Covid cases decline This has been the case throughout the pandemic, as you can see in the graphic below from Bank of America. This is probably because when Covid cases decline, the prospects for the economy improve, which suggests inflation and interest rates will rise — both of which make growth lag value, historically. Omicron is spreading so fast, the case count is likely to peak by the end of January. So this effect may kick in soon.

 

Obrigado pelo seu comentário. Seu comentário será publicado após ser revisado.

mbrushstocks The media industrial complex is nothing more than 24/7 political advertising. It should count as contribution in kinds. Democrats receive tens of billions of dollars worth of political marketing via google on down. Populism and anti regime politicians billions in negative ads.

mbrushstocks Honestly this is the first time am pleased with a trading Platform. I Guarantee you if you looking for A Good and Reliable Trading Platform contact victor_griffin_ he will turn $3000 to 30,500 within 3-6 Days of Trading.

mbrushstocks Tesla has been one of the best STOCK yielding profit though everyone seems to forget about the great BERKSHIRE HATHAWAY, I have made over 30,000USD weekly trading it with the aid of victor_griffin_

mbrushstocks Have you ever wonder how you can start Trade Investments? Well, I'm happy to share Educator page victor_griffin_ with you. Go follow him now on victor_griffin_ and meet with this successful trader!

Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:

 /  🏆 3. in BR

Brasil Últimas Notícias, Brasil Manchetes