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
Lock
This article is for subscribers only.

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.