Pennsylvania Trust

Growth To Value Rotation Is Evident

Growth To Value Rotation Is Evident

Value-based Cyclical shares, laggards in last month’s European sell-off, are starting to outperform their defensive peers.

Receding worries about the trade war, an improving geopolitical (Hong Kong) and fiscal (Venezuela) climate, and expectations of monetary stimulus have improved investor sentiment and pushed bond yields higher. That has hurt defensive sectors such as utilities, health-care and real-estate — often seen as bond proxies — while banks, miners and automakers are posting strong returns.

While the cyclical/defensive rotation has not been as evident in the U.S., the shift from growth to value cannot be ignored.


Disclosure: This Commentary represents a review of topics of possible interest to Pennsylvania Trust’s clients and is not personalized investment advice. It contains Pennsylvania Trust’s opinions, which may change following the date of publication. Information obtained from third-party sources is assumed to be reliable but is not guaranteed. No outcome – including performance – is guaranteed, due to various uncertainties and risks. This document is not a recommendation of any particular investment. Investment decisions for clients are made on an individualized basis and may be different from what is expressed here. Past performance is no guarantee of future results.