Wall St Week Ahead: Investors bet bounce in value stocks will stick

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As the U.S. economy begins to emerge from the sharp slowdown during the coronavirus pandemic, some fund managers have been drawn to value stocks, a sector that underperformed during the recent rally.

Phil Orlando, chief equity market strategist at Federated Hermes, has been shifting away from technology and healthcare stocks and into financial and energy companies. Technology stocks in the S&P 500 are up nearly 30% since the start of April, while finanical stocks are up 20%.

Investors will watch a raft of U.S. data next week including retail sales and business inventories for more evidence of an economy on the mend. On Thursday, the S&P 500 notched its biggest daily drop since mid-March after a cautionary economic forecast from the U.S. Federal Reserve and concerns over a possible resurgence of Covid-19.

Increased uncertainty over growth or the pandemic’s trajectory could push investors back into the growth companies that have delivered performance in recent months, even as the U.S. economy reeled from countrywide shutdowns, she said.

 

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Well the 1% on the hill are together, the rest of us suffer lives where they take all our money.

Strange how sentiment can change over night, the fake news induced a brief panic yesterday, and today it's mostly vanished. They'll keep trying to crash the market using every type of hoax imaginable until the election. $SPY $DIA

Strange how sentiment can change over night, the fake news induced a brief panic yesterday, and today it's mostly vanished. They'll keep trying to crash the market using every type of hoax imaginable until the election.

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