November 2025
Value equities have historically shown resiliency during higher inflationary periods versus their growth counterparts. Given that the current period of higher core inflation may last longer than expected, value opportunities continue to be an option to consider for portfolio diversification and potential stability.
“Sticky” core services persist
Inflation currently remains more elevated than it was over a year ago, although it has receded through October. Our view is that inflation will remain above target with 2% likely being the floor. We think price pressures continue in the pipeline, particularly in core goods. Core services remain sticky but with less labor demand, lower wage growth should contain further upward pressure.
Value beyond tech
While equity markets continue to be highly concentrated in more growth oriented companies, with tech leading much of that momentum, we believe attractive valuations can be found in other sectors like energy and financials.
In financials, we believe large banks like Bank of America and JP Morgan can offer opportunities through diversified lines of business where deregulation and buybacks or dividends are tailwinds for the sector. In energy, we see attractive supply-demand dynamics in oil, gas and refineries, such as Exxon, Phillips 66 and Marathon Petroleum.
For a deeper dive into various sectors and investment strategies, see the latest Monthly Checkpoints.
This is an extract from Checkpoints, a comprehensive monthly chartbook that provides insights into major themes affecting financial markets. For additional analysis, read the full report.
About the BNY Investment Institute
Drawing upon the breadth and expertise of BNY Investments, the Investment Institute generates thoughtful insights on macroeconomic trends, investable markets and portfolio construction.
* Chart illustrates a sample of sectors; for the full display, see the latest Monthly Checkpoints. Charts are provided for illustrative purposes and are not indicative of future results. Performance quoted represents past performance which is no guarantee of future results.
The price-to-earnings (P/E) ratio measures a company’s share price relative to its earnings per share (EPS).
The S&P 500 Index is designed to track the performance of the largest 500 U.S. companies. An investor cannot invest directly in an index.
This material has been provided for informational purposes only and should not be construed as investment advice or a recommendation of any particular investment product, strategy, investment manager or account arrangement, and should not serve as a primary basis for investment decisions. Prospective investors should consult a legal, tax or financial professional in order to determine whether any investment product, strategy or service is appropriate for their particular circumstances. Views expressed are those of the author stated and do not reflect views of other managers or the firm overall. Views are current as of the date of this publication and subject to change. The information is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.
DISCLAIMER
The information contained herein reflects general views and is provided for informational purposes only. This material is not intended as investment advice nor is it a recommendation to adopt any investment strategy.
Opinions and views expressed are subject to change without notice.
Past performance is no guarantee of future results.
ISSUING ENTITIES
This material is only for distribution in those countries and to those recipients listed, subject to the noted conditions and limitations: • United States: by BNY Mellon Securities Corporation (BNYSC), 240 Greenwich Street, New York, NY 10286. BNYSC, a registered broker-dealer and FINRA member, has entered into agreements to offer securities in the U.S. on behalf of certain BNY Investments firms. • Europe (excluding Switzerland): BNY Mellon Fund Management (Luxembourg) S.A., 2-4 Rue Eugène Ruppert L-2453 Luxembourg. • UK, Africa and Latin America (ex-Brazil): BNY Mellon Investment Management EMEA Limited, BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated by the Financial Conduct Authority. • South Africa: BNY Mellon Investment Management EMEA Limited is an authorised financial services provider. • Switzerland: BNY Mellon Investments Switzerland GmbH, Bärengasse 29, CH-8001 Zürich, Switzerland. • Middle East: DIFC branch of The Bank of New York Mellon. Regulated by the Dubai Financial Services Authority. • South East Asia and South Asia: BNY Mellon Investment Management Singapore Pte. Limited Co. Reg. 201230427E. Regulated by the Monetary Authority of Singapore. • Hong Kong: BNY Mellon Investment Management Hong Kong Limited. Regulated by the Hong Kong Securities and Futures Commission. • Japan: BNY Mellon Investment Management Japan Limited. BNY Mellon Investment Management Japan Limited is a Financial Instruments Business Operator with license no 406 (Kinsho) at the Commissioner of Kanto Local Finance Bureau and is a Member of the Investment Trusts Association, Japan and Japan Investment Advisers Association and Type II Financial Instruments Firms Association. • Brazil: ARX Investimentos Ltda., Av. Borges de Medeiros, 633, 4th floor, Rio de Janeiro, RJ, Brazil, CEP 22430-041. Authorized and regulated by the Brazilian Securities and Exchange Commission (CVM). • Canada: BNY Mellon Asset Management Canada Ltd. is registered in all provinces and territories of Canada as a Portfolio Manager and Exempt Market Dealer, and as a Commodity Trading Manager in Ontario. All issuing entities are subsidiaries of The Bank of New York Mellon Corporation.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
© 2025 THE BANK OF NEW YORK MELLON CORPORATION
BABR-841022-2025-11-14
GU-751 – 2 November 2026