Wall Street Jumps on Value Train Amid Record Global Rotation
- Strategists say shift to global value shares can continue
- Bernstein suggests investors keep growth stock exposure
This article is for subscribers only.
This week’s record risk-on equity rotation has excited strategists enough to argue that the shift toward global value stocks has legs, even if they are wary of proclaiming that this time is different for the group as a whole.
Euphoria over a potential vaccine breakthrough sent the world’s cheaper stocks surging the most ever relative to their faster-growing peers on Monday, and they followed up with their third-biggest beat on record on Tuesday. The MSCI All-Country World Value Index jumped almost 6% over the two days, while its growth counterpart fell 2% as investors rotated out of defensive technology names and into shares depressed by the economic impact of lockdowns.