U.S. value fund managers betting shift to value stocks won’t last

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U.S. value fund managers betting shift to value stocks won’t last GlobeInvestor

This translation has been automatically generated and has not been verified for accuracy.The massive U.S. market rotation into value stocks over the last two weeks is finally giving value fund managers a reason to be hopeful after years of underperformance.

Bank of America Merrill Lynch and JPMorgan argue that the U.S. rotation into value - which has also been seen in Europe - may run further. Yet investors like Dunn argue that the move into value is fleeting. At the same time, the steep increase in the yield of the benchmark 10-year Treasury note - whose jump from 1.45% at the beginning of September to 1.85% on Monday was the largest two-week gain since November 2016 - is helping boost the shares of financial companies that reap higher profits from interest rates, said Jonathan Golub, chief U.S. equity strategist at Credit Suisse Securities.“This looks more like a reprieve for value than a longer-term trend,” he said.

 

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