Q1 2017 | Market Perspectives
Go beyond the headlines to help investors understand the latest market and economic data with insights from Putnam.
Rising rates are historically positive for equities
U.S. stock valuations still appear fair, but below the surface trends may be shifting.
The most expensive quintile of stocks — led by large-cap growth stocks — now carries an average valuation more than twice as high as the remaining 80% of the market.
After many years of growth-style leadership in the market, a reversion to value might be at hand, driven by higher valuations and a potential resurgence in the weak financials and energy sectors.
There are early indications of sustained small-cap outperformance.