Value Investing: Will It Make A Comeback?

Value Investing is set for a comeback; that’s according to Barclays’ European Equity Strategy research team. In a note issued to clients, this week titled, “Will value ever work again?” Barclays’ European equity analysts ask the key question, why has value underperformed recently?

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While value stocks have outperformed over the longer term is their performance has been extremely disappointing of late.

However, this trend could be about to change as Barclays’ analysts note that value stocks are currently trading at a 55% discount to expensive stocks. What’s more, the analysts have found evidence which suggests that the value premium in Europe is mean reverting. When there is a substantial discount on value relative to more expensive stocks, value tends to outperform over the...