'Value is dead,' but bargain-hunting investors can significantly improve their returns by implementing these 4 steps, BofA says
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., March 17, 2020.The firm highlighted that value stocks just experienced their worst decade ever of performance relative to growth stocks, and it can all be explained by a single trade.
Low interest rates, little to no inflation, and a global economic slump account for 79% of the relative returns between growth and value, according to BofA. "Lower growth expectations, lower inflation and a flatter yield curve help growing companies that rely on long-term debt, and those same macro conditions also reduce the worth of short-term dividends, which are typically paid by value stocks," BofA explained.
"Vaccine/reopening progress would likely boost unloved financials and hurt growthy, overbought lockdown portfolios," Bank of America said. The firm noted that this trend was evident during last week's market sell-off, as the Russell 1000 Value index outperformed its growth counterpart by the most since 2008.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inside the secret club that helps determine which healthcare startups blow up - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
The 15 best value colleges of 2021 are great for business students - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
There's a 'huge amount of money' returning to China in the IPO space, investor saysAs tensions mount between Washington and Beijing ahead of the U.S. presidential elections in November, Stonehorn Global Partners' Sam Le Cornu sees more Chinese firms returning home.
Read more »
Scientists warn UK returning to 'exponential' growth in Covid-19 cases - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Fortnite active users on iPhone down 60%, Epic Games says - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
SUCCESS INSIDER: 6-figure side hustles, resume templates, Y combinator - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »