How Financial Advisors Are Playing the Rotation Out of Growth Stocks
The stock market has been rotating in recent weeks away from highflying tech stocks—particularly those of the stay-at-home variety—and toward cyclical value names
. But it’s understandable if some investment advisors remain wary of value: Growth stocks’ dominant decade-long run humbled many a value investor. And the recent market action could prove to be a head fake of the sort that we’ve seen many times over the years.
Believers, meanwhile, point to higher inflation, an anticipated rise in interest rates and sky-high growth-company valuations as factors that will sustain an exodus to value stocks. In this week’s Big Q, we asked advisors how they’re steering client portfolios through the rotation to value.
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