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Uncertainties mount over US economy’s path

Mount Equity Group Tokyo, Japan > News > Markets > Uncertainties mount over US economy’s path

NEW YORK: 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 United States economy’s trajectory in the months ahead.

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 US 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 16.2% year-to-date, just behind the 18.6 per cent notched by the Russell 1000…

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