Value vs. growth: Who is winning the race?

Value or growth: It has always been debatable in the investment world which investment philosophy yields more price gains in the long term. The value-oriented strategy seemed to have proven itself in recent weeks and months, since many companies were regarded as undervalued due to the crisis last year.

 

However, now the tide seems to be turning: The stock exchanges are back on course for growth, and the time period when value securities outperformed stocks could soon be over—just like inflation in the USA. It is becoming apparent that cyclical stocks have already reached their peak. At the same time, things are happening on the tech market, and it is growing strongly: Technology securities are benefiting from a strong boost based on their structures. We even expect tech companies to overtake bank equities soon.

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This is why we currently see greater earnings potential in the growth approach than in the value strategy. In particular, the technology sector is likely to pay attractive yields in the near future. In the following, we present our investment opportunities that could be interesting to investors. We focus on US and Chinese tech securities: