JPMorgan says traders should prepare to shift back to growth stocks following a year in which their value stock peers drastically outperformed by the most since the dot-com bubble.
The beaten down stocks the soared in 2022 are beginning to stall against growth bets as investors begin to position for a more aggressive Federal Reserve. "The concern is just that [value] will likely weaken this year, as markets reprice back into a recession scenario, while the bond yields could reflect the risk of central banks' policy mistakes, with continued yield curve inversion," Matejka wrote.
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