Understanding the art of the corporate turnaround
By Nick Guidera
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Much has been written about the great value rotation in the past few weeks. To be fair despite many predicting the premature death of value investing it was probably a matter of when, not if, the market would switch to growth opportunities given the extent growth has outperformed value since the GFC and the valuation extremes seen in respective baskets in mid-October.
Several US investment banks were banging the value drum pre-US election. The conditions ripe with the US 10 year treasury yields marching towards 1 per cent and the outlook for economic growth post pandemic looking rosy into 2021 with the low-base effect. To date those that advocated the switch are on the right side of it, the question remains around the duration.