Entering text into the input field will update the search result below

We Believe Growth Stocks Will Retain Longer-Term Market Leadership

Invesco US profile picture
Invesco US


  • We believe that all the industries that cater to older populations - everything from travel and leisure to healthcare - will continue to benefit from this demographic shift.
  • We believe the ceiling is lowering in many of the cyclical industries usually suitable for value investing because many are "20th-century industries" whose best days are likely behind them, in our opinion.
  • We do think that as the market recovers, value stocks could outperform growth names for a quarter or two, much as we saw in 2014.

By George Evans, CFA, Chief Investment Officer, OFI Equities, Alice Fricke, CFA, Senior Client Portfolio Manager

While the coronavirus pandemic has created market turbulence, the long-term trends driving global growth remain in place.

With the recent downturn in the markets and the ongoing issues we will be facing as a result of the coronavirus pandemic, many are asking if we have reached an inflection point in the market when value stocks will begin to outperform their growth counterparts. Growth stocks have been on an extended, decade-long run since the market recovered from the global financial crisis in 2009.

On the Global Equity team, our answer to that question is an emphatic "No." We think, in the years ahead, growth will continue leading the market. There are several reasons for our confidence in the potential of growth stocks to continue outperforming.

First and foremost, we believe events don't change trends. Events such as the coronavirus pandemic may either accelerate or slow them down, but the overall structural trends that have been shaping the global economy over the past decade, supporting some activities and depressing others, will continue, in our view. During this crisis, we can see many of them accelerating. Working remotely is one example, purchasing items through the Internet and having them delivered, rather than going to brick-and-mortar stores, is another. So, too, is engaging with colleagues, family and friends more visually through video conferencing, rather than simply texting, emailing, or phoning one another.

These are obvious examples we can see in our everyday lives. There are other, more specialized examples. Technology is also revolutionizing healthcare. For instance, gene sequencing will enable us to realize faster diagnostic results and ultimately faster development of drug and vaccine therapies. Analysis of big data will help improve medical diagnostics and public healthcare planning. These are just some of the trends

This article was written by

Invesco US profile picture
Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a recommendation of the suitability of any investment strategy for a particular investor. Invesco does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state tax laws are complex and constantly changing. Investors should always consult their own legal or tax professional for information concerning their individual situation. The opinions expressed are those of the authors, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE All data provided by Invesco unless otherwise noted. Invesco Distributors, Inc. is the US distributor for Invesco Ltd.’s retail products and collective trust funds. Invesco Advisers, Inc. and other affiliated investment advisers mentioned provide investment advisory services and do not sell securities. Invesco Unit Investment Trusts are distributed by the sponsor, Invesco Capital Markets, Inc., and broker-dealers including Invesco Distributors, Inc. PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Each entity is an indirect, wholly owned subsidiary of Invesco Ltd. ©2015 Invesco Ltd. All rights reserved.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.