More stocks and styles will fail in the new world
Mark Arnold & Jason Orthman | Hyperion Asset Management | 30 September 2020 | 0.50 CE
The economic growth bubble deflated and the value anomaly died with the GFC. A new economic framework then emerged which can be defined as a low growth, low inflation, internet-enabled, disrupted world. Incumbent investment frameworks such as Value, Shorting, Passive and Index Aware strategies are failing. In a whole new world, markets will be driven higher by a narrow number of emerging structural growth companies. In this new environment, most stocks and funds will not produce attractive returns and dispersion will increase. Going forward, su...