IWF/IWD Stock Forecast for 2022: Growth vs Value in the Pandemic Realities
This "IWF/IWD Stock Forecast for 2022: Growth vs Value in the Pandemic Realities" article was written by Sergey Okun – Senior Financial Analyst, I Know First, Ph.D. in Economics.
Summary:
- Low-interest rates provide a more favorable environment for the Growth Stocks than for the Value Stocks in the pandemic time.
- The IWF/IWD spread is equal to 1.67 corresponding to the numbers during the Dotcom bubble, and significantly higher than its historical mean and median numbers of 1.10 and 1.01, respectively.
- Expected changes in the monetary policy can have a strong impact on the IWF/IWD spread with the increasing strength of the Value Stocks.