Value Equities on a comeback?
“The value spread between the cheapest stocks and the market widened starting in March 2015 and continued through January 2016 on recurring growth scares, retracing 2/3 of the entire 2013-14 value tightening cycle. As growth fears receded in Q1, the spread has tightened, but remains well wide of cycle lows, with half of a typical value cycle tightening remaining." -- Deutsche Bank May 18 Asset Allocation Strategy report.
Value as a strategy underperformed the wider market throughout 2015 as growth stocks reigned supreme. Indeed, any funds following a value strategy were quick to point out in their full-year 2015 letters, that 2015 was the toughest year to follow such a strategy since the financial crisis.
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