FNArena’s Weekly Insights – October 15 2019
Brief recap of what has transpired across the Australian share market since January: upon an initially tepid recovery from deep oversold levels, equity markets put in a multi-month rally which saw cheaper-priced laggard stocks lead the rest of the market higher by some 20% by late July (total return, including dividends).
In professional funds management parlance the period can today be classified as a brief return to outperformance for “Value” over “Growth”. In other words: this was the time for miners and banks, and for industrial cyclicals to shine. It’s not that the operationally more solid Growth performers weren’t performing; they still did, just not to the same extent as their much cheaper priced brethren.