Correlation ‘is not causation’ for rates and value stocks

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It is a widely held belief in markets that when interest rates rise, value stocks do well and growth stocks do badly. This has been the central idea that observers have used to explain this year’s market rotation, in which the Russell 1000 value index is currently beating the growth index by more than 18%.

But although the theory might seem convincing, it may also be wrong.

Some top quants say the idea of a causal relationship between interest rates and the performance of value stocks is not

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