Investors brace for âmajor shiftâ as momentum and value collide
Since Novemberâs vaccine breakthroughs, value stocks have benefited from their high sensitivity to economic cycles. Now, they are climbing fast and consistently enough to start classifying as momentum stocks as well.
Robin Wigglesworth, Madison Darbyshire and Laurence Fletcher
Apr 15, 2021 â 9.34am
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The strength of the recent rally in cheap stocks could trigger a rare shift in equity market dynamics that some investors expect will fuel the gains of financial and energy companies.
For much of the past decade, so-called momentum stocks have been on fire, layering gains upon gains. Meanwhile, unloved âvalueâ stocks have limped behind, frustrating a generation of fund managers who made their reputation eking out equity market bargains.