21st June 2021 Morning Report

The Federal Reserve's indication last week that they will be becoming more hawkish has forced investors to re-evaluate the rally in so-called value stocks, which have taken a hit in recent days after moving higher for most of the year. Banking, energy shares in particular tumbled following the Fed comments. 

The Russell 1000 Value Stock Index is down 4% from its June peak, though still up 13.2% this year, while growth stocks are up 9.1% year-to-date. Value stocks had gotten ahead of themselves. However, many seasoned commentators believe the recent wobble in value stocks is a pause, rather than a turning point. Currently cyclical stocks are relatively the least over -valued, trading on average 40% above their historical while growth stocks are trading at double their 10 -year averages. 

Investors will be keeping a close eye on this week’s economic data for further clues on whether inflation will persist, given that consumer prices accelerated at their fastest pace in 

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

January 22nd Morning Report
January 20th Morning Report
January 17th Morning Report
January 15th Morning Report
January 14th Morning Report
January 13th Morning Report
January 10th Morning Report
January 9th Morning Report
January 8th Morning Report
January 6th Morning Report