©Reuters. Why Goldman Sachs Asset Management opts for a strategic mix of growth and value stocks
The distinction between growth and value is likely to blur and give way to a greater focus on opportunities to generate alpha, as well as greater sector and geographic diversification
Over the past 15 years, investors have overwhelmingly favored the growth style, which has clearly outperformed through 2020. However, in a world where leadership shifts between styles may be more frequent and secular megatrends over the long term may appear increasingly to cut across different styles and regions, it seems more appropriate to have a well-matched range of growth and value stocks in strategic portfolios.
A VALID APPROACH
A valid approach even assuming that, over the next year, the risks for the macroeconomic environment appear to be oriented in favor of a continued outperformance of value. “The inflation rate, while declining, is likely to remain above central bank targets through the end of 2024. At the same time, in the face of high inflation, it is unlikely that central banks hurry to cut rates as early as this year. And while economic growth has slowed, which should normally help growth stocks, it was still better than expected,” he said Simona GambariniSenior Market Strategist, Strategic Advisory Solutions di Goldman Sachs (NYSE:) Asset Management…
** This article was written by FinanciaLounge