For the past decade, a long-lasting deflationary economic cycle drove bond yields lower creating the perfect environment for high-growth stocks to flourish. This backdrop saw growth stocks outperform value stocks, with the US leading the growth charge while value-oriented Europe lagged behind. We believe that today’s environment of higher inflation and higher rates provides ground for value stocks to outperform growth, marking a turning point for European equities. So, how will this cycle be different for Europe?

For the past decade, a long-lasting deflationary economic cycle drove bond yields lower creating the perfect environment for high-growth stocks to flourish. This backdrop saw growth stocks outperform value stocks, with the US leading the growth charge while value-oriented Europe lagged behind. We believe that today’s environment of higher inflation and higher rates provides ground for value stocks to outperform growth, marking a turning point for European equities. So, how will this cycle be different for Europe?

For the past decade, a long-lasting deflationary economic cycle drove bond yields lower creating the perfect environment for high-growth stocks to flourish. This backdrop saw growth stocks outperform value stocks, with the US leading the growth charge while value-oriented Europe lagged behind. We believe that today’s environment of higher inflation and higher rates provides ground for value stocks to outperform growth, marking a turning point for European equities. So, how will this cycle be different for Europe?