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...

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