Investment Week – November 2, 2020 – By Lauren Mason

High-volatility and small-cap firms possible winners

Investors need to watch out for a slowdown in growth and momentum plays – such as the FAANG stocks – after the US Presidential Election, according to Style Analytics’ Damian Handzy, whose research shows that value, high-volatility and small-cap companies are likely to outperform during the months after the result is announced.

This view is shared by several other investment professionals on a longer-term basis, who believe post-election inflationary tailwinds will create “a new generation of winners” and boost the performance of some more cyclical companies, despite the fact many have underperformed their quality growth counterparts for several years.

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