PUBLISHED SUN, AUG 21 20228:23 PM EDT
Source: CNBC by Zavier Ong
Investors have poured into growth stocks of late, but as recession fears mount, market watchers are weighing whether to rotate into safer bets instead.
JPMorgan, however, believes the growth rally still has “further to go.”
“We continue to think the rebound in growth style is only tactical, but it likely has some further to go, perhaps even until year end,” JPMorgan’s strategists, led by Mislav Matejka, said in a Aug. 15 research note.
Matejka noted that growth stocks have outperformed their value counterparts in the U.S and Europe by 14% and 11%, respectively, since their June lows.
In particular, the tech sector stands out for its strong performance after a massive sell-off in the first half of the year. The tech-heavy Nasdaq Composite dropped on Friday, ending down 2% but is up nearly 20% from its June lows.
A number of stocks in JPMorgan’s basket of “growth opportunities” are up 50% or more over the past 2-3 months, the bank said.