Next month’s U.S. election could usher in a shift from growth stocks into value, regardless of the outcome, according to Citigroup Inc.
Every presidential vote in at least the last 40 years has sparked a potential rotation from one part of the market to another no matter who is elected, according to Citi’s head of U.S. equity trading strategy Alexander Altmann. This year, the contest could put value stocks in the limelight after growth shares have surged amid low interest rates and plunging bond yields.
“Value always performed pretty well in the six months after the election,” Altmann said at a Citi investment conference, adding that he has been backing value stocks since the end of May given the expected shift. “The magnitude of that performance did however vary depending on what kind of election outcome we got.”
Policy changes from new administrations brought on the biggest market reshuffles, he said. If Democrat Joe Biden wins and his party gains control of the Senate, “we should see a significant amount of rotation in the market,” Altmann added.
Altmann joins a number of market watchers who believe equities are mostly pointing to a Biden victory, but he cautioned that some have grown distrustful of polling in the wake of Brexit and the last U.S. presidential election.
Stocks could see a more exaggerated rotation post-election because skeptical investors are holding on to cash at the moment amid worries about a market-roiling outcome, he said.
FINRA's proposed rule filing would create a new 10-day fraud delay and nearly triple the maximum hold period for exploited senior investors
Fueled by a recent shot in the arm from private equity firm Carlyle, MAI adds a $490 million Atlanta RIA as it keeps building out its national footprint.
“Todd Burkhalter organized what is likely the largest Ponzi scheme in Georgia history,” said one FBI official.
With experience from Goldman Sachs and TD Ameritrade, the RIA's newest SVP hire adds to a recent wave of executive departures from hybrid Osaic.
Chicago-based Mesirow Fiduciary Solutions adds flexPATH's plan-level outsourced fiduciary book, boosting its retirement market reach to $164 billion.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
