Sweet Spot for Risk-On Stock Rotation May Be Near, Evercore Says
- DeBusschere says value stocks may be poised to outperform
- Strategist points to data on Covid-19, likely fiscal support
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The long-awaited rotation to value stocks may finally be coming, according to Evercore ISI.
A combination of smooth re-openings, improving infection rates, high retail-investor cash levels and the historically extreme relationship between growth and value stocks all support conditions for a risk-on rotation in the next couple of months, strategist Dennis DeBusschere wrote in a note Monday.