This week’s rally in value stocks is just the beginning

The arrival of a vaccine this week saw huge gains in the markets and investors switching out of big-tech growth stocks and into “value” stocks in more traditional businesses. It’s a switch that’s likely to last, says John Stepek. Here’s why.

Electronic stock indices board in Tokyo
The tech-heavy Nasdaq was one of the few markets to slip as investors switched to value
(Image credit: © PHILIP FONG/AFP via Getty Images)

It’s the end of what’s been a long week. The US election is over bar the shouting (I suspect there will be a lot of that). We’ve got a very promising Covid vaccine coming round the corner. After a burst of euphoria on Monday, we now have all the doubts creeping back in. So now it’s Friday – what have we learned?

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.