where does market could go! “We think that any way you look at...

where does market could go!







“We think that any way you look at it, value stocks have the advantage versus the overall market and growth stocks,” says John Thorndike, cohead of asset allocation at fund titan GMO. “That’s within sectors, across sectors, large-cap or small-cap.” And if high inflation persists, Thorndike adds, value stocks will get a double boost. That’s because the cyclical industries that are the bulwark of value—including financials, energy, materials, housing, and robust consumer brands—pack strong pricing power at a time when a growing economy means strong customer demand and higher costs. “These value stocks are unique in providing protection against inflation,” concludes Vitali Kalesnik, a partner at Research Affiliates (RA), an esteemed investment strategy firm that sees a big rebound on the horizon for value.