• This shift has left some investors wondering if the best has already come for value stocks.
  • We believe that value still has a long way to go; short-term reversals are not uncommon during long-term upward trends.

Toward the end of 2020, after several years of spectacular performance of a select group of technology-focused companies driving growth stocks (as measured by the MSCI World Growth Index) to outpace the broader equity markets, value stocks (as measured by the MSCI World Value Index) began to take the lead as a wider group of more economically sensitive companies started to push higher. Exhibit 1 shows the steady outperformance of value stocks over growth for much of the ensuing 12 months.

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