Future looks rosy for value stocks

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 63%

Deutschland Nachrichten Nachrichten

Stronger economic growth as well as stable inflation and bond yields should support category

A pedestrian wearing a protective mask walks past an electronic stock board outside a securities firm in Tokyo, Japan. Picture: BLOOMBERG/SOICHIRO KORIYAMA

It might sound strange, but growth stocks did extraordinarily well in 2020, despite the unprecedented recession. The reasons for this are: he value style was hurt by its sector composition with the two largest sectors being financials and industrials while the weight of the energy sector is 16 times that of its weight in the rival growth index.So why do we think value may outperform in 2021? We believe there are three key factors to watch regarding a potential pivot towards value: economic growth, inflation expectations and bond yields.

Potential further upside surprises on the economic growth front could come from fiscal policy in Europe and the US. We are a bit more sceptical about sharp rises in either inflation expectations and bond yields .

 

Vielen Dank für Ihren Kommentar.Ihr Kommentar wird nach Prüfung veröffentlicht.

Charloteamelia7 has proved to be the best news that has ever happened to me, Am very happy, and I will continue to testify about your good work until the world gets to know how genuine Charloteamelia7

Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

 /  🏆 12. in DE

Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen