We discuss BlackRock's midyear outlook and investing strategies for 2H
We discuss BlackRock's midyear outlook and investing strategies for 2H.
Investors have rotated back into growth-oriented areas of the market in recent weeks on optimism surrounding the economic recovery.
ETFs tracking Russell indexes took the charge in pulling most capital last week due to their rebalancing schedule.
Value stocks, which have strong fundamentals - earnings, dividends, book value and cash flow - and trade below their intrinsic value, have been benefiting from the growth in the economy.
After underperforming for the past few months, growth stocks have regained their appeal this month given the renewed appeal for riskier assets.
Value stocks seek to capitalize on the inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with their growth and blend counterparts.
We highlight several reasons for outperformance of value investing, which refers to those stocks that trade below their intrinsic value.
What can investors expect from the second quarter?
The combination of factors will result in increased industrial activity and pickup in consumer demand, thereby lifting value stocks.
