The Fed has restarted tightening, but investors are not rotating mechanically from Growth into Value. Technology and semiconductors held up while banks, Energy, housing and REITs weakened, signaling a new preference for self-funded earnings growth over businesses dependent on cheap capital.
Thematic Thursday: The Fed Hiked, but Growth Won the First Round Read More »
Growth is regaining momentum as AI investment expands and the Fed considers a September pause, but Value retains protection from high real yields and energy inflation. Payrolls, August CPI and the Strait of Hormuz now hold the key to factor leadership.
Factor Friday: Growth Has Momentum Again, but the Bond Market Still Holds the Veto Read More »
Value and cash-flow strategies retain the near-term advantage as long-term Treasury yields stay elevated, but investors continue buying Technology weakness. Growth can regain leadership if tame inflation, lower geopolitical risk and stronger AI economics finally produce a sustained decline in real yields.
Factor Friday: Value Has the Lead, but Growth Still Has a Path Back Read More »
The level and direction of interest rates will be a key factor in whether EAFE or EM exposures outperform in the second half of the year.
Higher real yields have not killed Growth because AI earnings momentum remains strong, but they raise the bar for leadership. The second half favors profitable AI-linked Growth, Growth-adjacent industrial infrastructure, and selective Value in financials, insurers, infrastructure, and materials.
Value’s 2026 leadership does not mean the Growth bull market is over. It signals a repricing of broad Growth exposure as investors favor current earnings, AI infrastructure bottlenecks, capital-markets leverage and inflation resilience over speculative monetization stories.
Factor Friday: Value Leads, but Growth Is Being Repriced, Not Rejected Read More »
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