FYI: The performance of U.S. value stocks over the last decade has led many to wonder whether the value premium has been completely eroded. New research from Boston-based Grantham Mayo Van Otterloo (GMO) shows that this was due to changes in relative valuations that favored growth over value, but now value stocks are priced attractively.
Relative valuations refer to the difference in metrics, such as price-to-book ratios, between value and growth stocks.
Regards,
Ted
https://www.advisorperspectives.com/articles/2019/08/17/new-research-from-gmo-on-value-investings-lost-decade
