The global shift to value from growth is playing out in Australian shares in force and could help the nation’s benchmark stock index close the gap with regional peers, according to analysts.
The recent surge in domestic value stocks is stronger than in the U.S. in part because the major banks have climbed to a three-month high amid growing optimism surrounding the economy. Australia is primed for a value comeback after becoming one of Asia’s biggest underdogs since the coronavirus outbreak started, Jefferies Group LLC said.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
