Friday Morning Coffee Nr. 69: So what?

080819 Friday Morning Coffee

Friday Morning Coffee Nr. 69: So what?

It has become common knowledge that value as an investment style is out of favor and trades at a record valuation discount towards its most expensive growth counterparts. The question raised by most stock market investors is however whether this valuation discount in itself is reason enough to invest into value stocks. In other words, after seeing value underperform for more than a decade since the financial crisis, they raise the legitimate question: “ Value is cheap. So what ?”.