Behind the US stock markets tragic September: value has finally won and grown

category:Finance
 Behind the US stock markets tragic September: value has finally won and grown


Among them, the biggest beneficiaries of style change include building materials supplier Martin Marietta materials, New York utility Edison and transportation giant FedEx. In September, these companies all rose more than 9%.

Meanwhile, the S & P 500 fell 3.9%, dragged down by companies such as Amazon. Tesla, which failed to make the S & P 500 index, fell 14%, but did not affect the index.

Some analysts and investors said the shift reflected only temporary profit taking by traders who had withdrawn funds from growth stocks and used them in lower priced stocks. Others believe that the recent growth in value stocks is the beginning of a trend that may continue.

They also said that with the slow improvement of the economy and the arrival of vaccines, consumers will increase investment in these industries and boost the rise of value stocks.

In addition, some analysts pointed out that with the continuation of the low interest rate environment in the United States, many value stocks are expected to bring dividend yield.

Growth stocks or stocks with higher than average performance have largely driven the rise of the US stock market. Over the past decade, the rise of these large technology stocks has been remarkable.

But some investors and analysts believe the performance of value stocks may be more durable. A survey by Bank of America in September also showed that more fund managers believe value stocks will outperform the index in the next 12 months.

Moreover, recent money flow data also show that investors have withdrawn money from mutual funds with growth characteristics. For example, according to Bank of Americas analysis of EPFR data, traders withdrew $1 billion from technology funds in the week ending September 23, the largest outflow since June 2019. Bank of America said the outflow coincided with inflows from industries such as materials and utilities. Chris zaccarelli, chief investment officer of independent advisor alliance, said his company converted some growth stocks into value stocks in September for the first time in years. Zaccarelli also said his company began to explore more areas, including industrial and financial. Nevertheless, some analysts have expressed cautious optimism about value stocks. Some investment strategists believe that although they have converted some growth stocks into value stocks, they are still cautious about cyclical industries. Source: Wall Street news editor: Yang Bin_ NF4368

Moreover, recent money flow data also show that investors have withdrawn money from mutual funds with growth characteristics. For example, according to Bank of Americas analysis of EPFR data, traders withdrew $1 billion from technology funds in the week ending September 23, the largest outflow since June 2019. Bank of America said the outflow coincided with inflows from industries such as materials and utilities.

Chris zaccarelli, chief investment officer of independent advisor alliance, said his company converted some growth stocks into value stocks in September for the first time in years. Zaccarelli also said his company began to explore more areas, including industrial and financial.

Nevertheless, some analysts have expressed cautious optimism about value stocks. Some investment strategists believe that although they have converted some growth stocks into value stocks, they are still cautious about cyclical industries.