Global Value Rotation Has Morphed Into Chasing Risk at Any Price
- MSCI world value and growth gauges both up about 4% this year
- SG analysis shows volatile value, risky growth shares in vogue
This article is for subscribers only.
The great global rotation out of growth into value stocks looks to have stalled this year, and investors have switched to chasing the riskiest stocks from both cohorts.
The MSCI World Value Index has performed in line with its growth counterpart this year -- up about 4% -- after a late 2020 burst saw it outperform by over 6 percentage points from the period just after the U.S. election. An analysis of return data from Societe Generale SA shows while investors have continued to chase the most volatile value stocks in 2021, they have also been backing the riskiest growth names.