Growth stocks getting popular
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23 March 2015
Posted in
Special research
According to the latest sentix data, investors’ preferences for growth stocks climb to a 26-month high. This reflects investors’ increasing risk appetite. Market participants obviously have left their quest for safety behind – a stance which was extremely pronounced during last fall.
In March, the sentix Styles Index: Growth vs. Value which measures investors’ preferences for growth against value stocks increases by two to -3.25 points. This is its highest reading since January 2013. Worth of note is the development of the indicator also because in October 2014 it had still stood at a level that was previously known only from the height of the financial crisis in 2008 and 2009 (see graph).
Since last autumn investors’ bias towards growth stocks has increased markedly. It now stands even above the average of the indicator being surveyed since 2004. The returning interest for this kind of asset is a sign of increased risk appetite – although the vagaries stemming from the unclear Greek situation and the Ukrainian crisis prevail.
The indicator adds to a series of other sentix data which are rather bullish for equity markets: For weeks now the basic confidence for the asset class shows strong readings. Also, economic expectations for the euro zone, and for the world as a whole, have risen strongly over the last months.
