From the desk of Steve Strazza @Sstrazza and Grant Hawkridge @granthawkridge
One of the most important themes these days is the rotation between growth and value stocks. Groups like energy and financials have been breaking to new highs while growth and tech indexes have come under serious pressure.
So far, 2022 has been a true tale of two markets.
While cyclicals and value stocks appear to be gearing up for a momentous year, it looks like the party is finally coming to an end for the growth trade.
We want to lean on the value-heavy leadership groups for long opportunities in 2022. As for growth, we think it’s likely to remain messy as interest rates continue to rise.
When we look beneath the surface at growth and value stocks right now, our breadth data is confirming the action we’re seeing at the sector level.
Let’s dive in and discuss…