Bloomberg writes for the fifth consecutive session value stocks are beating growth as the info tech sector lags. Value has not beaten growth in six straight sessions since the start of 2022.
For the month, growth stocks are down 3.7% while value is up 0.2%. Bloomberg writes that over 350 S & P 500 companies rose yesterday.
Is this the start of a longer-lasting trend or will it just be noise as was the case in years past? Over the years, many have called for such a transition, only for growth to come roaring back. NVDA’s earnings are released tomorrow. An argument can be made that this could validate or invalidate the current six-day trend.
Treasuries were relatively quiet with yields remaining in a tight trading range.
Today another sentiment survey is released. Will it validate recent surveys that indicated rising inflationary expectations?
Last night the foreign markets were mixed. London was up 0.42%, Paris up 0.04% and Frankfurt up 0.19%. China was down 0.80%, Japan down 1.39% and Hang Seng down 1.32%.
Futures are insignificantly lower as chipmakers continue their slide on US efforts to limit China’s technological prowess. Bitcoin tumbled below $90,000 to hit the lowest since mid-November. The 10-year is up 21/32 to yield 4.32%.
Kent Engelke
Chief Economic Strategist Managing Director
The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. This material is being provided for informational purposes only. Any information should not be deemed a recommendation to buy, hold or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. This report is not a complete description of the securities, markets, or developments referred to in this material and does not include all available data necessary for making an investment decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. If you would like to unsubscribe from this e-mail distribution, please reply to this e-mail and indicate that you wish to unsubscribe in your response.
