Value renaissance finally on way
It takes a lot of guts to come up with the proposition that this is the moment to shift the emphasis from growth to value stocks. But John Bailer, US equity income manager at Newton Investment Management, is certain. The reason: structural changes in the macroeconomy. Soaring inflation, for example, is giving rise to a veritable “value renaissance”.
Interest rate hike will burst tech bubble
It is not a question of whether the tech bubble will burst, but when, Amundi CIO Pascal Blanqué warned again. According to him, the bubble will burst as soon as interest rates rise.
Blanqué spoke about this during the outlook for 2022 that he, deputy CIO Vincent Mortier and head of research Monica Defend presented to journalists on Wednesday.
Fund houses are still betting on value stocks
Where growth stocks won the “battle” of value stocks for many years, value stocks recovered well late last year. Although growth stocks have recently regained ground, several fund houses are still expecting a continuation of the rally by value stocks.
T. Rowe Price, for example, sent out a market outlook last week in which it wrote to stick with value stocks despite the recent gains by growth stocks. According to the fund house, the valuations of growth stocks are too high and value stocks have a chance to get some support.