The Trend In European Value Is Just Getting Started, Says Morgan Stanley

Looking at causation for investment performance is typically done through various factors. Price-to-book-value, for instance, is a method to determine a stock’s value based on core asset values. While this performance driver has been “the worst factor in Europe over the last 10 years,” that could be changing, a Morgan Stanley report points out. Considering European value versus growth stocks, one of these categories should outperform based on the old-school metric of earnings per share.

European value stocks significantly outperformed in December

The fourth quarter of 2016 – with a historic US election – was also historic for another reason. The MSCI World’s Value index, tracking stocks that offer a “bargain” based...