What’s Behind the Historic Valuation Gap in Equities?

As sectors ranging from manufacturing to financials experience disruption, the valuation gap between growth and value stocks continues to widen. Director of Research Carmel Wellso explains why careful stock selection is important at this stage of the cycle.

Key Takeaways

  • Companies in sectors ranging from manufacturing to financials are experiencing disruption in various forms.
  • One effect of this disruption is an ever-widening valuation gap between higher-priced growth stocks and lower-priced value stocks.
  • Careful stock selection is critical at this stage in the business cycle.