NEW YORK (Reuters) – Some investors are playing this year’s tug of war between so-called growth and value stocks by owning companies that straddle the line between the two categories, as uncertainties mount over the U.S. economy’s trajectory in the months ahead.
FILE PHOTO: People are seen on Wall Street outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021. REUTERS/Brendan McDermid/File Photo
Value stocks, which trade at comparatively cheap multiples of their fundamentals, surged in early 2021 as hopes of an economic rebound boosted the shares of banks, energy firms and other economically sensitive names after years of underperformance.
Their performance against growth stocks has varied since then, with signs of a flagging U.S. economic rebound tending to benefit growth names, which are less tied to the economy’s fluctuations and led the market for most of 2020. The Russell 1000 Value index is up…