Investment insights

Will Value ever be fashionable again?

Fashion trends tend to move in cycles. Anyone who lived through the 1990s and kept wearing their Doc Martens and bright neon colours would have spent 25 years in the fashion wilderness. But now they find themselves bang on trend once again.

The catwalks are not the only place where the 90s seem to be making a comeback: Investment markets are also beginning to echo some very 90s themes. One of these is that Value investing has gone out of fashion – and with good reason. While global stock markets have performed strongly in recent years, so-called “Value” stocks – which trade at low prices relative to things like earnings and net assets – have lagged, especially compared to “Growth” stocks that command higher prices but have also grown their earnings and net assets at an above-average rate. Some people have gone as far as to pronounce Value investing dead. But is it?

Watch this 3-minute video to find out and you can read this article for additional insights.

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