John Bennett, Director of European Equities, explains why he believes value stocks could dominate the ongoing tug-of-war with growth stocks in 2022 and discusses why it is important for investors to stay the course.

Key takeaways

  • European equities will continue to be influenced by the ongoing debate around inflation and the closely associated shape of the bond yield curve.
  • After a long period of outperformance of growth stocks, we are starting to see signs that value stocks could dominate market returns in 2022.
  • Equity investors should be prepared for 10-20% drawdowns in their investments as we believe that this is part and parcel of investing in equities.