The Great Rotation: Why the Recent Value Rally Is Ready to Resume

If the conflict in Iran does not drag on, value stocks may be set to continue the rally they had begun before the disruption. Investors appear to be looking past short-term volatility and refocusing on sectors with stronger earnings support and more attractive valuations.

This could create opportunities for portfolios that favor cyclical businesses and companies with solid cash flow. The main risk is that a prolonged stalemate could keep energy prices elevated and delay a broader rotation into value.