The two ideal conditions for that plot to play out would be stable or falling interest rates and a slow but growing economy. However, there is a scenario where growth stocks could outperform value. It suggests that value will outperform in the coming years. This supports the argument in favor of value.Ī September 6 note from Goldman revisits the relationship between value and growth stocks in the current environment. Goldman Sachs believes economic growth will remain slow but positive, and that interest rates will rise modestly during the coming year. The S&P 500 value index of relatively cheaper stocks is down by about 9% year-to-date, while the S&P 500 growth index of fast-growing names is down 22% over the same period. While the broad market has taken an overall hit, investors historically flee to value over growth stocks in times of economic trouble. Despite inflation slightly cooling off in July, the Federal Reserve has maintained its hawkish stance in the fight to tame it. Interest rates are still on their way up. Within the growth sector, the investment bank favors firms with high profitability.The plot would require stable or falling interest rates and a slow but growing economy.A Goldman Sachs note from September 6 shares a scenario in which growth stocks can outperform.
0 kommentar(er)
