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UBS Has Game Plan for a Value Rotation, If It Finally Happens

  • Cyclical shares that are cheap laggards may benefit from shift
  • Rotation won’t happen without ‘visible inflection’ in growth

Quant prognosticators from Bank of America Corp. to JPMorgan Chase & Co. are telling clients to stick with battered value stocks even as they hit fresh lows. Now UBS Group Inc. is sketching a blueprint on winners and losers if the investing strategy finally snaps its losing streak.

Strategist Stuart Kaiser points to underperforming cyclical sectors like energy and automobiles as likely beneficiaries of a risk-on rotation into equities trading with depressed valuations.