Podcast: Play in new window | Download | Embed
Subscribe: Apple Podcasts | Google Podcasts | Spotify | Android | iHeartRadio | Stitcher | Blubrry | Email | TuneIn | RSS
Does value investing still work?
After many years of underperformance, value stocks have shown signs of life in 2021 as investors’ conviction in strong economic recovery has gained momentum.
Is this a turning point for value, or simply a short-term pop? Will value redeem itself, or will investors find their way back to growth stocks over the long term? Is something different this time?
To help investors answer these important questions — which have important portfolio implications — Northern Trust’s Katie Nixon is joined by the firm’s head of quantitative strategies, Michael Hunstad, and head of fundamental equities, Chris Shipley.
In this episode, you will learn:
- If value really is a compensated risk factor
- The valuation metrics and other criteria Northern Trust uses to define value and identify opportunities
- The reasons behind value’s underperformance relative to growth in recent years
- What needs to happen for value to sustainably outperform again
- How to avoid value traps
- If and how to maintain exposure to both value and growth stocks
Listen in as Katie, Mike and Chris explore the evidence and provide practical suggestions for investors grappling with the growth versus value conundrum.
Resources: Northern Trust | Katie Nixon | Michael Hunstad | Chris Shipley