Hennessy: Focus On Value, Financials, Utilities And Energy

U.S. equities offer a good risk/reward ratio at today’s current valuations, but investors should focus on value stocks and three market sectors: financials, utilities and energy, said Hennessy Funds during its Market Outlook press conference in New York on Wednesday.

With inflation continuing to drive the markets into 2024, and the Federal Reserve probably raising rates until at least June 2023, it will be at least another six months that value will beat growth, said Ryan Kelley, Hennessy’s chief investment officer and co-portfolio manager of 10 funds. “When the Fed starts cutting rates, then growth will come back. But for now stay defensive.”