Value stocks may be poised to continue their outperformance. However, their loftier valuations leaves them with the burden of high expectations and the need to deliver. The apparent trend favoring value stocks will only hold if we see increased growth in the U.S. and world economies. Such growth may depend on the market’s conviction in and the execution of Trump’s infrastructure spending and tax plans. If these plans materialize in conjunction with reduced taxes and increased spending, then we may see faster growth. The effectiveness of these measures depends, in part, on how swiftly they can be implemented before increased rates make the job more difficult.
Mason Wev, CFA, CMT is a Portfolio Manager at Clark Capital Management Group, a participant in the ETF Strategist Channel.
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Past performance is not indicative of future results. The opinions expressed are those of the Clark Capital Management Investment Team and are subject to change without notice. The opinions referenced are as of the date of publication and may not necessarily come to pass. This material is not financial advice or an offer to buy or sell any product. Clark Capital reserves the right to modify its current investment strategies based on changing market dynamics or client needs. The material in this report has been derived from sources considered to be reliable, but Clark Capital cannot guarantee its completeness or accuracy. CCM-910