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.
Dec
16
2021
Growth Or Value? It Depends More On The LEVEL Of Yields Than The Direction!
Login
For full access, please enter your credentials.
About The Author
![James Paulsen / Chief Investment Strategist](https://leuthold.imgix.net/leutholdgroup.com/site_files/authors/DSC_2988_LR_Jim.jpg?h=150&w=150&fit=crop&fp-y=.15)