Growth vs Value Stocks: What Next for Markets?

The rally in cyclical ‘value’ stocks paused for breath in February, as investors took a more cautious tone and switched their attention back to defensive areas

Artemis Investment Management 5 April, 2017 | 8:15AM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, explains how to invest given the many economic, geopolitical and policy risks that remain in today’s market.

The rally in cyclical ‘value’ stocks paused for breath in February, as investors took a more cautious tone and switched their attention back to defensive areas. In this article, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, explains how he has positioned the portfolio given the many economic, geopolitical and policy risks that remain.

The powerful rally in cyclical ‘value’ stocks and financials seen in the second half of last year – and which carried over into January, paused for breath in February. Although global equity indices crept higher, the gains tended to be led by more defensive areas. In this, the equities seemed to be following the more cautious mood evident in the bond market. Having risen sharply since the summer, yields on safe-haven government bonds, including 10-year US Treasuries, fell slightly on the month.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BHP Group PLC2,066.50 GBP0.00Rating

About Author

Artemis Investment Management  is a leading UK investment manager, offering a range of funds investing in the UK, Europe and globally