John Bennett, Director of European Equities, discusses growth versus value, whether he believes inflation will become more persistent and what this means for European equities.
- The valuation of growth stocks has been stretched to extreme levels. We believe this provides an opportunity for value stocks, which have been left behind.
- It is important not to become rooted in a single and one-sided view on inflation. Our view is that inflation will be "transitory" for longer at the very least.
- History proves that you cannot control bond markets, and we would be unsurprised if the bond market gets spooked.