Cyclical & Value Stocks Shift is Durable

It doesn’t take a rocket scientist to figure out that 2021 is a year of significant political and macroeconomic change.

Meanwhile, the rollout of COVID vaccines is starting to unleash a year’s worth of pent-up consumer and business demand. 

That demand is also putting upward pressure on prices and inflation expectations. Those pressures are showing up in the bond market where yields on long-term bonds, the most sensitive to rising inflation expectations are rising. The price of 30-year Treasurys has fallen 15.6% in just three months. 

This is a huge change and could signal the end of the 40-year bull market in bonds that many Wall Street pros have been predicting for years. Perhaps they will now be proven right. 

This week’s guest has been telling clients that inflation will probably be higher than many believe, that a significant cyclical recovery is in the works and is bringing with it a major change in market leadership.   

He is a noted investment strategist known for his macro analysis and thematic investing. He is Richard Bernstein, Chief Executive and Chief Investment Officer of Richard Bernstein Advisors, 

Bernstein explains why the shift in market leadership from stable growth stocks to cyclical value ones is normal and durable, and how to participate. 

WEALTHTRACK #1738 broadcast on March 19, 2021

More Info: https://wealthtrack.com/richard-bernstei…tocks-is-durable/

In this week’s WEB EXTRA feature, Bernstein reflects on how the COVID experience has changed his professional and personal life.   

https://wealthtrack.com/bernstein-pandemic-effect/

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