The majority of 2021 has seen a the fairly aggressive rotation out of the growth stocks into the old fashioned value end of town i.e. sell Healthcare & IT to buy Banks & Resources with the catalyst being soaring bond yields as the global economy recovered from the pandemic. However MM has been pointing out recently that we felt the elastic band had stretched too far and as bond yields drifted lower investors’ appetite for the growth sector would increase, this has been unfolding on cue of late, including last night.
On the sector level we are bullish both of the local main growth areas:
- MM remains bullish the IT Sector initially looking for ~20% upside.
- MM is bullish the Healthcare sector looking for ~15% upside.
In other words we continue to like the growth stocks although we see slightly more upside from the more volatile IT sector.
MM is bullish both the IT & Healthcare Sectors
