Cheap Stocks “As Expensive As They Have Ever Been”: Citi

Valuations have become more expensive overall as value stocks outperformed the market, according to research from Citi’s global quantitative team. Appetite for risk continued to rise, despite a temporary dip caused by the debt ceiling crisis, and now seems to be a good time for stock picking strategies, the team found. PE dispersion between cheap (q1) and expensive (q5) baskets “Recent strong value performance has significantly decreased dispersion in PE between cheap (q1) and expensive (q5) baskets. The cheap baskets around the globe (EU, US and Asia shown) are as expensive as they have ever been,” writes Citi analyst Chris…