Banks over growth stocks
Jost also noted that the growth stocks that so many investors are married to – such as Nestle – may not be as attractive as they seem.
Instead, he prefers to go for banks.
'Banks are paying you the highest ever dividend yields on the lowest payout ratios versus the market, based on a payout ratio of between 45% and 50% from their earnings. The Nestlés of this world, the so-called growth stocks, which mostly stopped growing some years ago, are paying out 75% of their free cash flow to sustain their meagre dividend yields. Which would you rather buy?'
Jost also said that rising commodity prices and higher employment rates are expected to have a positive effect on value stocks, pushing inflation upwards.
He said: 'The combination of inflation going up, rising commodity prices, the return of pricing power driving PPIs higher and interest rates normalising are the key drivers for value's outperformance.'
In terms of risk, Jost said he's keeping his eye on political turmoil around the world.