IN THIS QUARTER'S EQUITY OUTLOOK - Download PDF
- Mind the valuation gap
- Durable themes with room to grow
- What happened to value?
- Cannabis stocks: Too high on hype?
Market observers are aware of the fact that growth stocks have outperformed value for most of the past decade. Even more notable are trends over the past five years. During this period, the two styles diverged considerably, with growth taking the lead by a wide margin. In fact, the valuation spread — the difference between the market's cheapest and most expensive stocks — is at one of its widest points in history.
What could trigger a reversal of this trend, and how should equity investors be positioned? Our growth and value portfolio managers offer their views on the changing landscape and how the best approaches today may differ from those that worked best 10 years ago. We also take a look at investment prospects for the nascent cannabis industry.
Next: Mind the valuation gap