SSO - 3 Reasons Why Value Stocks May Outperform Soon
At Russell Investments, we believe in holding a strategic allocation to the value style, or factor within the equity market. Investing in stocks with depressed valuation multiples is widely understood by academics and fund managers to have outperformed passive equity benchmarks since the 1920s.1 But the value style has lagged significantly in recent years, with that underperformance becoming particularly acute in the first quarter of 2020. So where do we go from here?
First, this stretch of underperformance means that the spread between valuation multiples on value stocks and passive equity benchmarks has become