Market leadership shifts as growth and value strategies respond to interest rates

During a recent government meeting, discussions surrounding the Oklahoma City Employee Retirement System highlighted significant trends in international markets, particularly in developed and emerging economies. Over the past year, developed markets have seen a robust growth of 14.5%, while emerging markets have also performed well, with a 5.5% increase.

The meeting underscored the volatility in non-U.S. markets, noting that since 2022, there have been major shifts in market leadership, particularly between growth and value sectors. Notably, growth stocks surged dramatically as the economy began to recover from COVID-19, while deeper value stocks gained traction as interest rates began to rise.

These insights are crucial for the Oklahoma City Employee Retirement System as they navigate investment strategies in a fluctuating global landscape. The discussions emphasized the importance of adapting to these market changes to ensure the sustainability and growth of the retirement system's assets. As the city looks ahead, the focus will remain on leveraging these trends to optimize investment outcomes for its employees.