For investors struggling to find opportunities after a stellar rebound in the aging bull market, value stocks might be the best bet.
"Value tends to outperform when dispersion in valuations across the market is at its widest," said Bernstein's Inigo Fraser-Jenkins in a note on Wednesday."Valuation spreads are incredibly wide and sentiment may have found a floor. This provides a support for value within the market contrasted with traditional asset classes which are mostly fully valued."
"Value as a style tends to perform better than average when there have been extreme troughs in the earnings revisions balance series particularly 6 to 12 months following the point of most aggressive downgrades," Fraser-Jenkins said.
That’s because buybacks are widening the gap and cheap stocks are accurate markets for the present market.
A market for everyone.
Bullish for equities (joke - NO CHANCE)...... divergences like these always a sign of nasty imbalances
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