Is Value Set For A Comeback?

Since 2008, value investing has underperformed growth investing for the longest period on record. As a result, at the end of August, value was trading at its widest valuation discount to growth since the Dotcom Bubble of the late 1990s. And value’s performance since the financial crisis has been unexpected. Value investing as a style has historically outperformed growth more. Still; past results are no guarantee of future performance, and there’s no guarantee that value will recover. However, as Franklin Templeton points out when major global central banks begin policy normalization, the idea of mean reversion, or normalization, offers an intuitive…