Founder & Head of Research, Fortress Hill Advisors

Alex Ng

Founder & Head of Research

Fortress Hill Advisors

Founded in Hong Kong in 2019, Fortress Hill Advisor seeks to provide premium economic and financial researches.

Premium Economic & Investment Research

Cross Asset Strategy

<ul>
<li>What implications does the recent trend of growth stocks significantly outperforming value stocks have for investors?</li>
<li>The famous economist Eugene Fama's Three-Factor Model mentions that small-cap stocks will outperform large-cap stocks and value stocks will outperform growth stocks in the long run.</li>
<li>However, looking at the performance of the U.S. stock market, in recent years, not only large-cap stocks have significantly outperformed small-cap stocks, but growth stocks have also  outperformed value stocks.</li>
</ul>


What implications does the recent trend of growth stocks significantly outperforming value stocks have for investors?
The famous economist Eugene Fama's Three-Factor Model mentions that small-cap stocks will outperform large-cap stocks and value stocks will outperform growth stocks in the long run.
However, looking at the performance of the U.S. stock market, in recent years, not only large-cap stocks have significantly outperformed small-cap stocks, but growth stocks have also  outperformed value stocks.


A Reversal of Conventional Wisdom: Growth Stocks Outperform Value Stocks

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

<ul>
<li>The energy, materials and tech sectors have lost momentum, while telecoms and utilities sectors lead the market.  Consumer sectors are lagging.  HSCI has dipped below its 200 day moving average.</li>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-china-gas-co-ltd" target="_blank" data-smartkarma-citation="entities:375:1" rel="noopener">Hong Kong &amp; China Gas (3 HK)</a> breaks to the upside as investors seek safety and yield.  
</li>
<li>
<a href="https://www.smartkarma.com/entities/petrochina-co-ltd-h" target="_blank" data-smartkarma-citation="entities:262:1" rel="noopener">PetroChina (857 HK)</a> has broken down relative to the MSCI China index and <a href="https://www.smartkarma.com/entities/travelsky-technology-ltd-h" target="_blank" data-smartkarma-citation="entities:19829:1" rel="noopener">Travelsky Technology Ltd H (696 HK)</a> breaks down from a triangle formation  but downside is limited.
</li>
</ul>


The energy, materials and tech sectors have lost momentum, while telecoms and utilities sectors lead the market.  Consumer sectors are lagging.  HSCI has dipped below its 200 day moving average.

Hong Kong &amp; China Gas (3 HK) breaks to the upside as investors seek safety and yield.  


PetroChina (857 HK) has broken down relative to the MSCI China index and Travelsky Technology Ltd H (696 HK) breaks down from a triangle formation  but downside is limited.



Technically Speaking, Breakouts and Breakdowns: HONG KONG (July 31)

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

<ul><li>Monetary / Caixin Explains: Why and how China’s overhauling monetary policy (Part 1)</li><li>Flights /: Olympics Games boost air travel between China and France</li><li>Property /: China must resolve real estate crisis and not rely on exports alone, expert warns</li></ul>

Monetary / Caixin Explains: Why and how China’s overhauling monetary policy (Part 1)Flights /: Olympics Games boost air travel between China and FranceProperty /: China must resolve real estate crisis and not rely on exports alone, expert warns

CX Daily: Why and How China’s Overhauling Monetary Policy (Part 1) 

Head of Research and Global Chief Strategist, Steno Research

Andreas Steno

Head of Research and Global Chief Strategist

Macro and Geopolitical Research House

Steno Research

Steno Research is a new macro and geopolitical research house. We are based out of Copenhagen, Denmark, but have an international team and a strong network of sources and partners around the world. The team is lead by Andreas Steno, previous global head of strategy at Nordea Bank, and Mikkel Rosenvold, former chief consultant in the Danish Ministry of Finance.

<ul><li>Markets remain focused on 2-3 rate cuts from the Fed, growth not rolling over fully, and inflation continuing its downward trajectory.</li><li>There seems to be no way to change this narrative among market participants.</li><li>The slightly hawkish PCE in the US and today’s relatively high German inflation print (in harmonized terms) had a hard time moving rates markets, which are currently pricing more than 2.5 cuts from the Fed and more than 2 cuts from the ECB by year-end, with Fed September pricing even showing a tiny lean towards 50 bps.</li></ul>

Markets remain focused on 2-3 rate cuts from the Fed, growth not rolling over fully, and inflation continuing its downward trajectory.There seems to be no way to change this narrative among market participants.The slightly hawkish PCE in the US and today’s relatively high German inflation print (in harmonized terms) had a hard time moving rates markets, which are currently pricing more than 2.5 cuts from the Fed and more than 2 cuts from the ECB by year-end, with Fed September pricing even showing a tiny lean towards 50 bps.

Positioning Watch – Metals bets are finally being squared, but retail is piling in

<ul>
<li>Data released by the Conference Board on Tuesday (30th) showed that the U.S. consumer confidence index rose to 100.3 in July, higher than market expectations of 99.7.</li>
<li>This was due to improved view about the economy. Improvements in job market expectations offset pessimism about current conditions.</li>
<li>The consumer expectation index for the next six months rose to 78.2 in July, a new high since January this year. It is also the largest consumer expectation improvement since.</li>
</ul>


Data released by the Conference Board on Tuesday (30th) showed that the U.S. consumer confidence index rose to 100.3 in July, higher than market expectations of 99.7.
This was due to improved view about the economy. Improvements in job market expectations offset pessimism about current conditions.
The consumer expectation index for the next six months rose to 78.2 in July, a new high since January this year. It is also the largest consumer expectation improvement since.


Economic Outlook Improves: U.S. Consumer Confidence Index Rises to 100.3 in July, More than Expected

Cross Asset Strategy
Cross Asset Strategy Insights

A Reversal of Conventional Wisdom: Growth Stocks Outperform Value Stocks

Recent trend of growth stocks outperforming value stocks challenges Eugene Fama's Three-Factor Model, raising implications for investors.

Alex Ng

Technically Speaking, Breakouts and Breakdowns: HONG KONG (July 31)

Utilities and telecom sectors have gained favor in HK as investors seek low volatility and dividend yield. Hong Kong China Gas has formed a...

David Mudd

CX Daily: Why and How China’s Overhauling Monetary Policy (Part 1)

Monetary / Caixin Explains: Why and how China’s overhauling monetary policy (Part 1) China’s central bank is starting a major overhaul of how it...

Caixin Global

Positioning Watch – Metals bets are finally being squared, but retail is piling in

Markets remain focused on 2-3 rate cuts from the Fed, growth not rolling over fully, and inflation continuing its downward trajectory. There seems...

Steno Research

Economic Outlook Improves: U.S. Consumer Confidence Index Rises to 100.3 in July, More than Expected

US consumer confidence index rises to 100.3 in July, surpassing expectations, driven by improved economic outlook and job market expectations.

Alex Ng

A Reversal of Conventional Wisdom: Growth Stocks Outperform Value Stocks

​Recent trend of growth stocks outperforming value stocks challenges Eugene Fama's Three-Factor Model, raising implications for investors.

Alex Ng

Technically Speaking, Breakouts and Breakdowns: HONG KONG (July 31)

Utilities and telecom sectors have gained favor in HK as investors seek low volatility and dividend yield. Hong Kong China Gas has formed a...

David Mudd

CX Daily: Why and How China’s Overhauling Monetary Policy (Part 1)

Monetary / Caixin Explains: Why and how China’s overhauling monetary policy (Part 1) China’s central bank is starting a major overhaul of how it...

Caixin Global

Positioning Watch – Metals bets are finally being squared, but retail is piling in

Markets remain focused on 2-3 rate cuts from the Fed, growth not rolling over fully, and inflation continuing its downward trajectory. There seems...

Steno Research

Economic Outlook Improves: U.S. Consumer Confidence Index Rises to 100.3 in July, More than Expected

​US consumer confidence index rises to 100.3 in July, surpassing expectations, driven by improved economic outlook and job market expectations.

Alex Ng

Recent trend of growth stocks outperforming value stocks challenges Eugene Fama's Three-Factor Model, raising implications for investors.

US consumer confidence index rises to 100.3 in July, surpassing expectations, driven by improved economic outlook and job market expectations.