Consider Value ETFs as Inflation Weighs on the Growth Style
May 13, 2021
Growth stocks are retreating as rising inflation fears weigh on the markets. Exchange traded fund investors can, instead, look to the value style.
The consumer price index surged a higher-than-expected 4.2% in April year-over-year, according to the Labor Department, rising to its highest 12-month level since the summer of 2008, the Wall Street Journal reports.
“That’s starting to get investors a little bit nervous here since we are trading still near all-time highs across the equity market,” Tony Bedikian, head of global markets at Citizens, told the WSJ.
The increase in commodity prices, ongoing supply chain problems and hiring difficulties have fueled expectations of a prolonged increase in consumer prices.