When inflation heats up, everyone looks for good deals when they go shopping. The same is proving to be true in the stock market this year—and in dramatic fashion.
It’s a reversal in a rivalry that’s as fierce as that of the Yankees and the Red Sox: growth vs. value. In other words, is it best to buy companies with dazzling, if sometimes dubious, prospects for sales and profit growth or to focus on stocks that look cheap based on the value of the company’s assets, even if earnings growth is relatively modest?
After languishing behind growth for most of the past decade-plus, value investing has come back with a vengeance. Take the S&P 500 Pure Value Index, which tracks companies with low valuations based on the ratios of their share price to their book value, earnings, and revenue. Since the middle of November, the index has returned close to 8% with dividends. Over the same period, its sister index, the S&P 500 Pure Growth, has lost investors 25%.
For the 12 years before that, the growth index’s return of 650% was almost double that of the value index’s. The sudden switch in fortunes has been a bonanza for funds focused on cheap stocks. Among exchange-traded funds alone, value strategies have seen inflows of $55 billion so far in 2022, compared with a net outflow of $1 billion for growth, according to Bloomberg Intelligence. So is it time for value money managers to gloat?
この記事は Bloomberg Businessweek の June 13, 2022 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Bloomberg Businessweek の June 13, 2022 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers