Today, the valuation difference between Growth Equities and Value Equities is at a historically high level. It is close to the peak during the dot-com bubble of 2000, offering significan catch-up potential.
DNCA's experts, pioneers in value management, explain why we can expect a paradigm shift in the equity markets, more favourable to this type of stock.
- Since the financial crisis of 2008, the climate of uncertainty dragging down the global economy, successive crises in the eurozone, low interest rates and relatively lacklustre economic growth have favoured so-called « growth » companies that are the principal beneficiaries of falling interest rates.
- The growth cycle that has persisted over the past 12 years has also been interrupted by three rebounds in Value Equities, driven by an improved economic outlook.
- While it is difficult to declare the emergence of a new value trend in the short term, a certain number of indicators militate in favour of a rebound in the medium term.
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