Pedestrians walk passed signage at Cigna headquarters in Bloomfield, Connecticut.
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The recent rotation away from growth has created one of the best stretches for value stocks in the past decade, but there are still cheap names out there for investors, according to Goldman Sachs.
David Kostin, the firm’s chief U.S. equity strategist, said in a note to clients that value’s surge since vaccine data was released in November resembles the two biggest value moments since 2013 and has investors nervous about whether it was an overshoot.
“Based on our client conversations, most investors share our view that interest rates will continue rise. But many believe that the equity market rotations that have recently accompanied rising rates have gone too far,” Kostin said.