Vanguard: Value stocks haven't been this cheap to growth since the COVID outbreak

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 97%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

Comparing other periods when value stocks were deemed so relatively unattractive versus growth shows it ultimately pays to be contrarian.

That’s not surprising. At Jackson Hole 12 months ago Federal Reserve Chair Jerome Powell gave a speech of just 8 minutes in length that many reckon was the trigger for the stock market’s slump to October lows.

Crucially, Vanguard says that the relationship between value and growth is currently at an extreme level very similar to that seen in 2020. This is shown in the three instances of extreme valuations pictured. After an overvaluation in 1993, value shares underperformed growth by a cumulative 8 percentage points on their three-year trundle back to the median of Vanguard’s estimated fair value range, shown as the dark yellow prediction ratio line.

Furthermore, market performance across the dozen U.S. business cycles since 1980 suggests another potential reason for optimism on value, says DiCiurcio. Try your hand at the Barron’s crossword puzzle and sudoku games, now running daily along with a weekly digital jigsaw based on the week’s cover story. To see all puzzles, click here.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 3. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Insurer AIA posts rise in new business value as China reopens post COVID By ReutersInsurer AIA posts rise in new business value as China reopens post COVID
Källa: Investingcom - 🏆 450. / 53 Läs mer »

Peloton stock value drops 20%, company blames recent recallPeloton saw its stock drop 22% on Wednesday after company leaders said a recent recall cost the company over $40 million.
Källa: 10News - 🏆 732. / 50 Läs mer »