Value stocks are trading at the steepest discount in history

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Value investing helped make Warren Buffett the third richest man in the world. But it’s been a losing strategy since the financial crisis.

That’s according to an analysis by J.P. Morgan’s chief U.S. equity strategist, Dubravko Lakos-Bujas, who wrote in a Thursday note to clients that “value is currently trading at the biggest discount ever, and offers the largest premium over the last 30 years.”

While value investing helped make Buffett the third richest man in the world, it’s been a losing strategy since the financial crisis, when stock markets have been driven more by macroeconomic events than company fundamentals, and dominated by fast-growing, technologically innovative companies like Netflix Inc. NFLX, +0.39% and Amazon.com Inc. AMZN, +0.91% with sky-high valuations that value investors typically avoid.

The discrepancy between performance of growth stocks and value stocks has grown so much that even Buffett’s Berkshire Hathaway has been buying up shares of Amazon, a quintessential growth stock, while Buffett regrets not having bought shares himself sooner.

 

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This guy would, know what he's talking about. markets business

mostly because of the banks..

This old simp will look like a total moron at the approaching market top!

Brett

Lol time to buy obv! These sheep...

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