top of page
control884

Style rotation

2023 so far has been a good year for the equity markets. Although we still haven’t surpassed the prior maximum of December 2021, the rally between October 2022 and today has been historically strong. Having said that, it hasn’t been a broad rally: it’s been dominated by #tech  and consumer staples stocks, very concentrated in a handful of names, and as a result, as you can see below, #dividend paying stocks have been excluded from the rally. The reason for that is, perhaps because for the first time in several years, treasury bills provide that cash flow, and it’s not needed from equity investments at this point. It’s is interesting to see how investors favored value style for most of 2022, and rotated to growth since October, as rates were ramping up and short term rates became more competitive that dividends. Historically, the 3rd year of the presidential cycle is the strongest one, and it may have had an effect on style preference. There may be another rotation ahead.


Want to know more? join Fund@mental here https://apps.apple.com/us/app/fund-mental/id1495036084



Chart source: Bespoke investments



15 views0 comments

Recent Posts

See All

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page