Should investors and markets stop talking bull? Why the Great Rotation is like the Great British summer

Short-term thinking will ruin long-term prospects

clock • 7 min read

As we approach the start of spring, what has happened to the Great Rotation that was forecast to happen this year from growth to value? It does not appear to have gained much traction and could even be argued to have slipped back somewhat.

According to the ASR Asset Allocation Survey for November/December 2020: "Only 9% expect growth to outperform value over the next 12 months." The first few weeks of 2021 must be making the 91% a little edgy. Of course, it's early days yet, but it got me thinking that the Great Rotation is a bit like the Great British Summer. You talk about it a lot, spend months anticipating it, celebrate it when it arrives, but always look back on it somewhat disappointed that it is over so soon (if indeed, it arrived at all).  This is all in the knowledge that, in this country, it will only ever be ...

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