By Kurt Feuerman, Robert Milano
US value stocks staged a strong recovery in September after an extended period of underperformance. While value slipped again in early October, we're monitoring four signals that might indicate whether we're on the cusp of a bigger value rebound.
Since 2017, US growth stocks relentlessly powered ahead of value stocks. Ultralow interest rates and fears of a weak macroeconomic growth recovery have suppressed stocks with attractive valuations, which tend to be more sensitive to the economic cycle. At the same time, the ever-increasing popularity of mega-cap technology and new media