Insights
Macro Insights
GMA Viewpoint: Value in the Eurozone
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Global Multi-Asset Viewpoint
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April 30, 2019
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GMA Viewpoint: Value in the Eurozone |
Almost a year ago, in May 2018, we discussed how U.S. value stocks were entering their twelfth year of underperformance compared with U.S. growth stocks. Value stocks in the U.S. had become much cheaper than normal compared to growth stocks and investor enthusiasm for growth stocks had been steadily building. But our conclusion was that a regime switch back to value from growth was not yet imminent (and had “another few quarters of underperformance ahead before the turning point,”) as the macroeconomic conditions still favored growth stocks, capital spending by growth companies was high but not yet excessive and investor enthusiasm for growth stocks was not yet euphoric.1
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