JPMorgan Says Prepare to Dump Value Stocks for Growth
- Economic and inflation backdrop now less positive for value
- Cheaper stocks are losing appeal after being market darlings
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Last year’s strong outperformance in cheaper, so-called value stocks over growth peers is likely to reverse soon as the economic recovery slows, say JPMorgan Chase & Co. strategists.
A market favorite in 2022, the value trade is starting to lose its sheen. The next move for investors in the following month or two might be to go “outright underweight value versus growth,” the team led by Mislav Matejka wrote in a note.