Value Stocks Lead The Way In The US And Abroad

“We think the market re-rating due to an improved macro environment has broadly finished. Stock selection will be back on the agenda for 2014 requiring selective Value exposure,” say the Citi Quantitative Global Research team in their Global Quant Outlook for 2014.

Global investing styles

Analysts Chris Montagu, Liz Dinh, Javier Guardo, Jason Bennett, Matthew J Burgess, Rahul Jalan, James J Murray and David T Chew argue that though global equity markets have been gaining confidence in economic and corporate fundamentals, there still remains an undertone of caution. This has lead to a very strong performance from the Quality style of investing, though the Value and Risk styles have also shown healthy gains.

Pure style performance globally has been...