Sep 20, 2026 · 15 min
Value rotation tests equity-market leadership
House Call: Talking Equity Markets with UBS Asset Management
The discussion frames strong equity performance against a pivotal question: whether value can extend its 2026 gains as rates, commodities, and geopolitics shift.
- 1Earnings growth and broader market forces have supported strong equity performance beyond the headline index numbers.
- 2The 2026 move from growth to value raises questions about whether market leadership is genuinely broadening.
- 3Interest rates, commodity prices, and the conflict in Iran remain central risks for the market outlook.
Don't miss
Jeff Hans connects the shift from growth to value with the broader question of whether market leadership is widening.
The brief
Dominique Shager and Jeff Hans of UBS Asset Management examine why equities have performed strongly and what lies beneath the headline returns.
Jeff Hans points to earnings growth and broader market forces as key drivers, suggesting the rally reflects more than a narrow index story.
The conversation turns to 2026’s rotation from growth to value, testing whether value’s outperformance can persist and whether leadership is broadening.
The outlook hinges on risks including interest rates, commodity prices, and the continuing conflict in Iran, each capable of changing market expectations.
The episode’s central tension is whether a market supported by earnings can sustain its momentum while its leadership and external risks are both shifting.
What was said on this episode
6 statements · 6 positive
Accelerating Russell 1000 Value earnings growth drove value-stock outperformance.
“what we sort of attribute to the outperformance has been this big acceleration that we've seen in earnings growth for the Russell 1000 value index.”
Listen at 7:48
AI spending is benefiting cyclical economic sectors through spillover effects.
“all of this AI spending that's having this trickle-down effect into really some cyclical areas of the economy.”
Listen at 8:07
Russell 1000 Value earnings are expected to grow about 22% in 2026.
“earnings growth for 26 for the Russell 1000 Value Index is now expected to be up about 22%.”
Listen at 9:31
AI technology spending will likely continue through 2027.
“our baseline view is that it likely does.”
Listen at 10:04
Old-economy sectors and stocks should continue seeing healthy earnings growth.
“there's a good argument to be made that a lot of these old economy sectors and stocks should still see healthy earnings growth ahead”
Listen at 10:18
Healthy old-economy earnings growth can support value-stock performance.
“which we think can continue to support some good performance for value stocks.”
Listen at 10:26
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.