Value Rotation May Not Last Long, Warn Carillon and Invesco
- Energy, financials are ‘value traps,’ Carillon’s Orton says
- Move into value could be a ‘head fake,’ Invesco’s Leger says
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“Head fakes” and “value traps” are some of the words being used by two money managers to warn investors who are rotating into value-oriented stocks after recent positive vaccine news from Pfizer Inc. and Moderna Inc.
An effective vaccine for Covid-19 could bring the global economy back to life, helping sectors that were battered by the pandemic and boosting cheap stocks. However, investors will need to be careful as these moves are overdone after this month’s trading action and can lead to “value traps,” according to Matt Orton, vice president at St. Petersburg, Florida-based asset manager Carillon Tower Advisers Inc.