Asset Allocation Strategy
Value Rotation on Pause
Mon 11th April, 2022

After a period of significant outperformance for value over the past few months, growth has staged a comeback since mid-March.

Value stocks performed well at the end of last year and during the Russian invasion saga. However, growth staged a comeback over the past 3 weeks, as geopolitical tensions eased and global growth expectations moderated. For investors, a key question is whether value outperformance will endure or will the market revert to its decade-long trend of growth dominance.

Over the next 6-12 months we still see the case for value as relatively strong, with the current macro backdrop remaining supportive of this style relative to growth. In this report we cover:

  • The factors that impact value
  • Why the economic outlook is still supportive of value
  • Valuation dispersion still wide
  • The risks to value

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Written by

David Cassidy, Head of Investment Strategy

David is one of Australia’s leading investment strategists.

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