There's a 'renaissance' coming for boring stocks. Here's how investors can position to take advantage, according to BofA.

Markets Insider06-12

Bank of America predicts large-cap value stocks will start to outperform growth stocks.Value has underperformed growth stocks for two decades but that could soon reverse.Bank of America noted four ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2442530138?lang=en_US&edition=fundamental","thumbnail":"https://markets.businessinsider.com/images/unsortiert/nyse-trading-floor-stocks-traders.jpg","is_english":true,"pubTime":"2024-06-12 01:52","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2442530138","market":"us","top_or_hot":-1,"title":"There's a 'renaissance' coming for boring stocks. Here's how investors can position to take advantage, according to BofA.","media":"Markets Insider","content":"<div>\n<p>Bank of America predicts large-cap value stocks will start to outperform growth stocks.Value has underperformed growth stocks for two decades but that could soon reverse.Bank of America noted four ...</p>\n\n<a href=\"https://markets.businessinsider.com/news/stocks/stock-market-outlook-boring-value-stocks-renaissance-rally-buy-etfs-2024-6\">Source Link</a>\n\n</div>\n","source":"marketsinsider","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>There's a 'renaissance' coming for boring stocks. Here's how investors can position to take advantage, according to BofA.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThere's a 'renaissance' coming for boring stocks. Here's how investors can position to take advantage, according to BofA.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-12 01:52 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://markets.businessinsider.com/news/stocks/stock-market-outlook-boring-value-stocks-renaissance-rally-buy-etfs-2024-6><strong>Markets Insider</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Bank of America predicts large-cap value stocks will start to outperform growth stocks.Value has underperformed growth stocks for two decades but that could soon reverse.Bank of America noted four ...</p>\n\n<a href=\"https://markets.businessinsider.com/news/stocks/stock-market-outlook-boring-value-stocks-renaissance-rally-buy-etfs-2024-6\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1363072403.SGD","symbol_name":"Fidelity Global Financial Services A-ACC-SGD","start_time":0,"source_url":"https://markets.businessinsider.com/news/stocks/stock-market-outlook-boring-value-stocks-renaissance-rally-buy-etfs-2024-6","article_id":"2442530138","we_media_id":null,"thumbnails":["https://markets.businessinsider.com/images/unsortiert/nyse-trading-floor-stocks-traders.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2442530138","pubTimestamp":1718128344,"sourceInfo":{"source_id":"marketsinsider","name":"Markets Insider"},"weMediaInfo":null,"summary":"Bank of America predicts large-cap value stocks will start to outperform growth stocks.Value has underperformed growth stocks for two decades but that could soon reverse.Bank of America noted four sector ETFs to buy to take advantage of the trade.Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview. Access your favorite topics in a personalized feed while you're on the go.A hard landingAnother scenario in which value stocks should outperform is if the economy experiences a hard landing.That would likely lead to a sharp sell-off in growth-oriented stocks and the relative outperformance of value stocks.\"Equity allocations are near record highs, and if recession odds begin to rise, investors rotating from equities to bonds will necessarily be selling more growth than value,\" Bank of America said.A 5% interest rate worldA \"higher for longer\" interest rate regime should benefit value stocks and drive their outperformance, ","collect":0,"end_time":0,"defaultTopTitle":"businessinsider.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","BK4553":"喜马拉雅资本持仓","LU0106831901.USD":"贝莱德世界金融基金A2","LU0320765489.SGD":"FTIF - Franklin Mutual US Value A Acc SGD","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD","LU0070302665.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) ACC","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","IE0002270589.USD":"LEGG MASON CLEARBRIDGE VALUE \"A\" (USD) INC","LU0971096721.USD":"富达环球金融服务 A","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU1718418525.SGD":"JPMorgan Investment Funds - Global Select Equity A (acc) SGD","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","BK4559":"巴菲特持仓","IYK":"iShares U.S. Consumer Staples ETF","LU0149725797.USD":"汇丰美国股市经济规模基金","LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","IE00B7SZLL34.SGD":"Legg Mason ClearBridge - Value A Acc SGD-H","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","BK4588":"碎股","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU1496350171.SGD":"FRANKLIN DIVERSIFIED BALANCED \"A\" (SGDHDG) ACC","LU1496350502.SGD":"FRANKLIN DIVERSIFIED DYNAMIC \"A\" (SGDHDG) ACC","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","BK4207":"综合性银行","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4581":"高盛持仓","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","BK4504":"桥水持仓","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","LU0208291251.USD":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","BAC":"美国银行","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD"},"translate_title":"无聊的股票即将迎来“复兴”。美国银行表示，以下是投资者如何利用这一优势。","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"IYK":1,"BAC":0.9},"content_text":"Bank of America predicts large-cap value stocks will start to outperform growth stocks.Value has underperformed growth stocks for two decades but that could soon reverse.Bank of America noted four sector ETFs to buy to take advantage of the trade.\n\n\n\n\n\n\n\n \n\n\n                                    Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview\n\n\n\n\n\n\n \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nThanks for signing up!\n\n\n                              Access your favorite topics in a personalized feed while you're on the go.\n                              \n                                download the app\n                               \n\n\n\n\n\nEmail address\n\n\n\n\n\n                                      Sign up\n                                     \n\n\n\n                                  By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy. You can opt-out at any time by visiting our Preferences page or by clicking \"unsubscribe\" at the bottom of the email.\n                              \n\n\n\n\n\n \n\nAdvertisement\n\nThe most boring area of the stock market is poised for a \"renaissance\" of outperformance, according to Bank of America.\"Read my lips: Large. Cap. Value,\" Bank of America strategist Savita Subramanian wrote in a note.According to the bank, boring value stocks, which have practically been left for dead as investors chase AI-fueled growth names, are set to outperform the broader stock market for the first time in a long time.\"After two decades of steady underperformance, US value may outperform growth again,\" Bank of America said.\nAdvertisement\n\nAccording to the bank, there are three scenarios where value should be the preferred area of the stock market to own.Broader earnings growth\"After a decade of underinvestment, low quality earnings, and the onset of inflation, corporates focused on efficiency should mean broader S&P 500 earnings growth through 2025,\" the bank said.That means it won't be just the mega-cap tech companies driving earnings growth and higher stock prices.\"Value sectors starved for capital, such as energy with newfound capital discipline and financials with stronger balance sheets and better lending capacity should be rewarded as earnings growth catches up,\" Bank of America said.\nAdvertisement\n\nA hard landingAnother scenario in which value stocks should outperform is if the economy experiences a hard landing.That would likely lead to a sharp sell-off in growth-oriented stocks and the relative outperformance of value stocks.\"Equity allocations are near record highs, and if recession odds begin to rise, investors rotating from equities to bonds will necessarily be selling more growth than value,\" Bank of America said.A 5% interest rate worldA \"higher for longer\" interest rate regime should benefit value stocks and drive their outperformance, according to the bank.\nAdvertisement\n\n\"US value stocks have lagged growth by an unprecedented 230% in the '2% world' interruption caused by peak globalization, deflationary technology, optimal demographics, and low debt burdens. A world of structurally higher rates and inflation should bolster value stocks,\" Bank of America said.The bank said a reversion to the mean in interest rates and other macro factors could support an annualized five percentage points of outperformance for value stocks relative to growth stocks.For investors seeking to take advantage of the potential value trade, the bank recommends investors take a look at four sector ETFs that are value oriented.Utilities\"Utilities (XLU, FXU) have one of the lowest ETF valuation scores with P/Es at their lowest level since 2009 vs. the S&P 500. Utilities control the power required for AI to realize its potential,\" Bank of America said.\nAdvertisement\n\nEnergy\"Energy (XLE, OIH, MLPX) screens cheap at the sector and industry levels. Energy companies should benefit from tight markets and the embrace of capital discipline. Energy industries like services should benefit from rising demand while MLPs offer strong balance sheets, high yields, and access to supply-constrained natural gas markets,\" Bank of America said.Banks\"Banks (KBE, KBWB) look more attractive today than the broad financials sector. Head of North American Banks research Ebrahim Poonawala expects strong mega-cap bank performance to continue and thinks regionals can get a boost from more certainty around Fed cuts,\" Bank of America said.Consumer Staples\"Staples (IYK) ETFs look relatively cheap - understandable given recent concerns over consumer behavior. Sativa Subramanian is underweight staples, but in a hard landing scenario our stock analysts see scope for deeper food retail promotions, which should help boost volumes,\" Bank of America said.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.0","shortVersion":"4.24.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2442530138"}