Change in leadership in the market - Outperformance of Value only just started.

In our previous BrightTalk webinar we noted that by the end of the year the world and equity landscape might be quite different due to a solution to US Elections, likely stimulus packages for the US and Europe, a Brexit deal and a potential vaccine to Covid. Most of this was achieved in the Quarter and equity markets responded accordingly. In this webinar we want to highlight the change in leadership towards the Value style as confidence in a global economic recovery gathers strength. It is our contention that we are only at the start of this “Value” rally and it has much further to go. We will also revisit our comments from the last webinar on inflation and look at how much further the shift in style towards more cyclical and value-based investment has to run. It would appear that we are in the final phase of the pandemic and news-flow should begin to improve in the coming weeks. We continue to be optimistic that the underlying pent-up demand from individuals and actions by governments will stimulate a recovery in economic growth. Consequently, we retain a portfolio bias to more economically cyclical businesses including maintaining a near maximum weighting in Financials.