Positive news of a coronavirus vaccine and the conclusion of the US election have emboldened global dealmakers to revisit proposed mergers & acquisitions, according to bankers and legal advisers. Companies across the globe announced nearly $40bn worth of deals on Monday alone in a clear sign that CEOs are looking to tap cheap debt or use cash stored away during the crisis to carry out strategic M&A.
The latest shake-up in global equities has left investors wondering whether a switch in favour of an unloved corner of the market has finally arrived. Last week’s rotation to value stocks from momentum names — such as Amazon and Netflix — was the most violent on record, eclipsing even the turmoil of the 2008 financial crisis. But even after last week’s decline, growth stocks are still up more than 25% this year, while value stocks have lost 7%. They’ve gained only 88% in the last decade, against a 225% increase for growth shares.
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