Saturday, September 19, 2020

Massive underperformance of value stocks

 From The Economist


The age-old strategy of buying cheap shares is faltering

Shares of value firms have underperformed the market since 2010

In the US,  the 'growth' stocks which dominate the indices are the tech stocks, including Tesla, Apple, Twitter, Facebook.  The 'value' stocks tend to be older  industries. And oil has traditionally been classified as 'value' but has underperformed direly as the cost of new oil fields has risen while the price of oil has fallen.   



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