Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top

Cathie about to be outperformed by 91-year-old man who doesn't like the internet

Wood’s Ark Invest ETF and Berkshire Hathaway are often seen as prime examples of two very different investment styles — growth and value respectively. The reversal of their share prices reflects a jarring rotation between the two tribes in recent years.

Wood’s Ark Invest ETF and Berkshire Hathaway are often seen as prime examples of two very different investment styles — growth and value respectively. The reversal of their share prices reflects a jarring rotation between the two tribes in recent years.

Does the violence of the rotation suggest regime change is upon us and a sustained reversal in the performance of growth versus value is under way?

Growth investors look for companies that may not be profitable but are expanding rapidly, often found in hot sectors like technology. Value investors are more price-sensitive, and often look for bargains in dowdier or beaten-up industries — such as energy and banking recently.

The improving economic growth outlook and central banks shifting to a more hawkish position on inflation — led by the US Federal Reserve —have been the primary triggers for the investor rotation from growth to value. Value stocks are typically found in sectors that benefit from stronger growth and higher interest rates, while the allure of growth stocks dims somewhat in such environments, analysts say.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
20
1
+0
9
Translate
Report
140K Views
Comment
Sign in to post a comment
avatar
Video Sharer
639Followers
68Following
2027Visitors
Follow