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At year-end, most technology stocks seemed overpriced, while value sectors like financials, energy and commodities looked cheap.
Buying the three somewhat smaller value sectors and shorting a bigger growth area creates a synthetic small-cap value portfolio.
The status quo, an 800 kind of market, finds me at a 40% probability, but I see a huge divergence between growth and value sectors.
The disparity between the growth and value sectors has widened to over 1,000 basis points, an enormous chasm by historical comparison.
Similar(56)
"But there is improving momentum in the value sector".
Growth in the discount and value sector helped Northern Foods to report an increase in sales last year.
Mr. Henning is cautiously optimistic, about both the market and his favored small-cap value sector.
He said the retailer was "committed to leading the value sector".
That recent experience is an important reminder that the small-cap value sector can be risky.
Yet historical precedents suggest that the small-cap value sector deserves serious attention.
The company said the discount and value sector had driven growth last year and now accounted for a fifth of sales.
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CEO of Professional Science Editing for Scientists @ prosciediting.com