Unexpectedly high inflation should be a boon for value stocks in their long-running battle with growth stocks.
That’s the theory, at least: Growth stocks derive a disproportionate share of their valuation from future years’ earnings, so they should disproportionately suffer when higher inflation means that the present value of those earnings is lower.
The…
Opinion: Ten recommended stocks if you think value will beat growth
Unexpectedly high inflation should be a boon for value stocks in their long-running battle with growth stocks.
That’s the theory, at least: Growth stocks derive a disproportionate share of their valuation from future years’ earnings, so they should disproportionately suffer when higher inflation means that the present value of those earnings is lower.
The…
Read More: Opinion: Ten recommended stocks if you think value will beat growth