This Is the ‘Perfect’ Time to Buy Value Stocks on Sticky Inflation, Rob Arnott Says
- Valuation spreads have widened anew on AI-sparked tech rally
- Odds of a hard landing are rising, smart-beta pioneer says
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With odds of a hard landing rising just as inflation is set to re-accelerate, this is the time for investors to offload their expensive growth shares in favor of value stocks, says Rob Arnott, founder of smart-beta pioneer Research Affiliates.
Inflation is set to climb near 5% by year-end thanks to base effects, said Arnott, which will be a tailwind for cheap shares that have been neglected all year as investors dove headlong back into Big Tech stocks.