We are currently living in a market of stocks where returns and valuations vary significantly, making it increasingly important to pick out the best stocks to reach strong returns.
As you can see below, value stocks are significantly lagging the performance of growth stocks (-16.3% for large-cap value vs. +9.8% for growth), primarily caused by the outperforming big tech stocks such as Microsoft (MSFT), Amazon (AMZN) and Apple (AAPL). This value stocks' underperformance makes it increasingly interesting to include them in your portfolio.
Value stocks are stocks which are