Inflation Drives the “Great Rotation”

By |2021-05-31T15:39:50-05:00May 31st, 2021|Uncategorized|

Strong economic growth and inflation are persistently driving the “great rotation” from growth stocks to cyclical stocks. Were it not for the historically low Treasury yields, which make stocks attractive by comparison, the S&P 500 stock index’s overvaluation would be problematic. As vaccination levels rise toward herd immunity, economic activity is rapidly recovering.