investors have poured into growth stocks of late but as recession fears mount market watchers are weighing whether to rotate into safer bets instead jpmorgan  however believes the growth rally still has further to go we continue to think the rebound in growth style is only tactical but it likely has some further to go perhaps even until year end jpmorgans strategists led by mislav matejka said in a aug 15 research note matejka noted that growth stocks have outperformed their value counterparts in the us and europe by 14 and 11 respectively since their june lows in particular the tech sector stands out for its strong performance after a massive selloff in the first half of the year the techheavy nasdaq composite dropped on friday ending down 2 but is up nearly 20 from its june lows a number of stocks in jpmorgans basket of growth opportunities are up 50 or more over the past 23 months the bank said big catalysts the analysts pointed to the peaking of bond yields in june as one of the big catalysts for the rebound in growth stocks while yields have been recently trying to firm up again jpmorgan expects bond yield movements to remain constrained in the near term given continued soft economic activity read more top tech investor reveals why he thinks paypal is a buy have markets hit the bottom strategist reveals the indicators to watch closely as stocks rally goldman sachs says planned energy transition is driving stocks picks its bestinclass names growth firms which typically appeal to investors for their future cash flows benefit from lower yields on longerdated us government securities such as the 10year us treasury often used to calculate the present value of future cash flows the yield on the benchmark 10year treasury note remains below 3 after topping 348 in midjune the 2year treasury rate  which is more sensitive to us monetary policy changes now sits at 3273 this implies a yieldcurve inversion when shorterterm government bonds have higher yields than longerterm ones despite carrying lower risk this is often viewed by markets as a sign of a looming recession when to rotate into value the us 10y2y yield curve is outright inverted at present having been flattening steadily we think that one should not switch back into value before the yield curve starts resteepening matejka said a bottoming of economic activity momentum is also a prerequisite for value stocks to bounce jpmorgan said while stronger economic data which is not expected until the fourth quarter and a weaker us dollar will benefit more valuedriven sectors we think that the tactical rebound in growth style has some more legs as bond yields are likely to stay stuck near term but the call is still tactical at some point towards year end we are looking to get conditions right for a renewed leadership of value and this time in a generally robust broader equity market matejka said