Goldman tells clients to get the best of both worlds with these growth stocks at a reasonable price

SourceCNBC
SectorFinancial Services
CountryMiddle east

As value stocks have outperformed growth stocks in the past several months, Goldman Sachs recommends a strategy that captures the best of both worlds: growth at a reasonable price. The firm used economic models to predict that value stocks will continue to outshine in the third-quarter of 2021, but that growth stocks will likely take back the lead in late 2021 or early 2022. But Goldman acknowledged it’s a tough call to make and both styles could look at times like they are breaking out.

“Until the market has conviction about whether recent inflationary pressures are ‘transitory’ it seems likely that the Growth vs. Value trade will remain volatile,” Goldman’s Ben Snider said in a note released Wednesday. As concerns about higher inflation and interest rates continue, the firm said “it will be difficult to justify” switching portfolios back to longer-term growth stocks. So Goldman says GARP stocks are the perfect ones to meet the moment. The firm screened for...read more...