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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EQUITIES
- Some investors have argued that the rise in inflationary pressure in 2021 could generate the start of a 'Great Rotation' from growth to value stocks, and also potentially ease the trend we have seen on momentum stocks.
- While momentum stocks have been trading sideways in the past few months since their peak reached in mid-February, this chart shows that the Momentum value was cut in half this year on rebalancing toward cheaper shares; the 12M forward P/E ratio plunged from a high of 36 to 18.
- As most developed economies are gradually preparing for the global reopening, earnings are expected to rebound sharply in the coming months (hence, lower forward PE ratio) leading to the potential start of another new trend in momentum stocks.
- In addition, global liquidity is still increasing and has historically strongly supported growth and momentum stocks in the past cycle.
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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