European Stocks Will Outperform S&P 500 in 2017

European and Japanese stock markets will outperform S&P 500 in 2017 - and it is due to the resurgence of value stocks, says Henderson's John Bennett

Karen Kwok 23 February, 2017 | 10:09AM

Value stocks will continue to outperform growth stocks through 2017, according to John Bennett, head of Europe equities for Henderson. The trend, which began in September last year, has seen value stocks – much unloved for the past few years – rally considerably. But Bennett says this is just the beginning.

“European and Japanese stock markets will outperform the S&P 500 in 2017 as the value market in the world is mainly Europe and Japan rather than S&P 500. However a lot of things have to not go wrong for that to hold,” said Bennett.

Bennett started shifting his fund, the Silver Rated Henderson European Focus Trust (HEFT), into value stocks from growth companies starting last February, and began trading more aggressively in the second half of the year. This is because he believes high quality growth stocks become expensive as they are “scarce, and overbought” in Europe.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Henderson European Focus Trust Ord1,292.50 GBX1.37

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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