‘Value outperformance is only just beginning’
The expected returns on US value stocks are attractive compared to growth stocks. As a coronavirus vaccine is now around the corner, the global economy will pick up next year. This will be supportive for long-term outperformance of value stocks, according tot Christian Correa, President and Chief Investment Officer of Franklin Mutual Series.
Covid-19 vaccine: has the value rotation arrived?
Pfizer’s coronavirus vaccine that sent global stock markets higher on Monday prompted double digit gains in value stocks while growth companies saw their share prices tumble. Is this the long-awaited rotation to value?
‘Short but fierce value rally ahead’
The difference in valuations between expensive and cheap stocks has overshot in recent weeks. Investors can therefore expect a period of outperformance of value stocks. However, this will not last too long.
Investors’ asset allocation consensus now seems stronger than it has ever been. Pretty much all investors are overweight in quality and growth stocks, avoiding the sectors most affected by the corona crisis.