Growth stocks enjoying best year-to-date outperformance since 1979 – but value can soon bounce back, Bank of America says


  • Stocks just closed out their best third-quarter performance in a decade, but Bank of America expects growth stocks to soon take a back seat to value names.
  • The Russell 1000 Growth Index opened a 36 percentage-point lead over its value-focused peer on Thursday. That’s the biggest outperformance for growth stocks in data going back to 1979, Bank of America said in a note to clients.
  • Still, investors’ heavy concentration in growth sets value up for a bounce-back. The bank recommended high-quality value stocks to ride out election-season volatility and the US economic recovery.
  • Positioning, valuation dispersion, and “an expected recovery in the profits cycle” point to a near-term rally for value, the team of strategists led by Savita Subramanian added.
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The stock market is hot off of its best third-quarter performance in a decade, and growth names are set

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EMERGING MARKETS-Turkish lira slides to record low, EM stocks bounce

By Sagarika Jaisinghani

Sept 28 (Reuters)The Turkish lira hit a record low on Monday on growing concerns around clashes between Armenian and Azeri forces, while emerging market stocks tracked gains in Asia as data showed a jump in Chinese industrial profits.

The lira TRY= tumbled 1.5% to a low of 7.79 against the dollar, while the Russian rouble RUB= eased for the fourth straight session. Azerbaijan AZ167862306= and Armenia AM120765485= sovereign dollar-denominated bonds fell as much as 3-4 cents.

“Fears are that Turkey gets dragged into another regional conflict,” said Timothy Ash, EM sovereign strategist at BlueBay Asset Management, referring to the fighting over Nagorno-Karabakh, an enclave in Azerbaijan controlled by ethnic Armenians.

The lira, already among the worst performing European currencies this year, received a brief respite last week following a surprise move by the central bank to raise its key lending rate, but analysts said

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