In this video, John Bennett, Portfolio Manager of the Henderson European Focus Trust, provides an update on the Trust highlighting the rotation between growth and value stocks, valuations in the ‘growthy’ segments of the market, and touches on the inflation conundrum.

Key takeaways

  • Equity markets continued to rotate between growth and value over the summer, but there has been a resurgence of outperformance from growth stocks.
  • Valuations in the ‘growthy’ segments of the market have gone too far and are reminiscent of 1999 before the bubble; this could potentially provide value conscious investors with opportunities.
  • Inflation is likely to remain high in the coming months and it may be stickier than expected, despite central banks messaging that it is “temporary” in nature.