NEW YORK (Reuters) - Shares of U.S. companies with the strongest balance sheets look "inexpensive" and may be set to out-perform more speculative bets on growth stocks, according to BlackRock Inc (N:BLK) global chief investment strategist Russ Koesterich.
Koesterich said in a commentary posted online Monday that so-called value stocks - more appealing for their balance sheets or cash than their growth prospects - could out-perform if "economic conditions continue to stabilize" and as energy and financial stocks have bottomed out.
"Value typically outperforms during periods when economic conditions are improving," he said. "The spread between U.S. large-cap value and U.S. large-cap growth is greater than at any time since the bursting of the technology bubble in 2000."