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Dec 16 2021

Growth Or Value? It Depends More On The LEVEL Of Yields Than The Direction!

  • Dec 16, 2021

As the Federal Reserve turns more hawkish and expectations for higher interest rates mount, investors are lowering exposure to growth stocks. Typically, growth stocks exhibit a higher duration than value stocks because a larger proportion of their cash flows won’t be received until the distant future. Consequently, like longer-term bonds, growth stocks are generally expected to struggle when yields rise.

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About The Author

James Paulsen / Chief Investment Strategist

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