The Zhitong Finance App learned that Mike Wilson, chief investment officer of Daimo, said that the bear market crisis of growth stocks this year has spread to value stocks in the industrial, financial and energy sectors that have defensive properties in 2022.

Wilson said, “The problem with value stocks now is that they may be just as vulnerable to the economic slowdown as profitable growth stocks six or 12 months ago. I don't think there's much difference between value stocks and growth stocks at this stage in the economic cycle, with the exception of the utilities, necessities, and healthcare sectors of value stocks”.

Wilson said there are still reasons to allocate relatively stable defensive utility, essential and healthcare stocks, but this excludes industrial, financial and energy stocks, because the economic downturn expected in 2023 should put pressure on earnings and valuations. “This may not bring about the investment results desired at this stage.”