This is why today’s price action between growth and value stocks matters, especially as the Federal Reserve (the Fed) has cut interest rates for the third consecutive time. Investors can check out this article to see how the spreads between the iShares S&P 500 Value ETF (NYSEARCA: IVE) and the iShares S&P 500 Growth ETF (NYSEARCA: IVW) are at multi-year lows, giving a rare opening into today’s value stocks.
Knowing this opportunity is present here, and how Goldman Sachs’ chief equity strategist claimed that “risk-adjusted” return stocks are the best picks for 2025. The translation would say that stocks with lots of upside and very little downside are the best picks, also known as value stocks. That’s where names like PepsiCo Inc. (NASDAQ: PEP), Nike Inc. (NYSE: NKE), and ASML Holdings (NASDAQ: ASML) come into play for this opportunity.
