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Bet on value turnaround with JPM UK Dynamic

If value stocks start to do better JPM UK Dynamic should reap the benefits
March 3, 2016

Investing in areas of the market that are out of favour can reap good returns over time - and value stocks, which fall into real economy segments such as energy, mining, banks and industrials - currently fit into this category.

IC TIP: Buy at 159p
Tip style
Growth
Risk rating
High
Timescale
Long Term
Bull points
  • Targets value stocks, which could do well
  • Good record over recent years
  • Can invest in smaller companies
Bear points
  • Poor performance longer term
  • Volatility

Peter Toogood, investment director at research company City Financial, believes that a rotation from growth to value could occur in one of two ways. "The first is a complete market washout, reminiscent of 2008, when all sectors of the market fell in tandem but value stocks outperformed – they were cheaper and no one owned them," he says. "The second is that global economic doomsayers are wrong and economic growth revives in the second half of the year.

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