2020-06-25 15:10:52, , ProShares
Content Categorization
/Business & Industrial
/News/Business News/Financial Markets News
/Finance/Investing/Stocks & Bonds
Word Count:
2616
Words/Sentence:
28
Reading Time:
26.16 min
Reading Quality:
Advanced
Readability:
16th or higher
We came into 2020 with expectations for roughly 10% earnings growth for 2020, which struck many as high, considering growth was trending lower throughout 2019 and had turned negative for Q3.
Despite the equity market's dramatic rebound, bonds are still at the top of the leader board in 2020 (as shown in the earlier performance recap chart), having done their job serving as a buffer during the pandemic-driven sell-off.
To date, only 46 companies of the S&P 500 have issued guidance for Q2, an amount well below average, while almost 200 names from the S&P 500 have withdrawn or confirmed their previous withdrawal of fiscal year 2020 guidance.
A high-quality approach, which was defined in our Viewpoint article with regard to credit ratings and individual payout ratios, may be an effective response to today's challenging investing environment for both dividend resiliency and total return.
But this most recent period of underperformance by
value stocks has now placed the price-to-book of growth stocks at roughly 3.5 times that of
value stocks, a premium exceeded only at the height of the tech bubble.
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