We are at the end of a 'value-down' cycle

Equity markets had a tough time in 2018. Value stocks were particularly hard hit and the style saw one of the longest periods of underperformance relative to growth in recent years.

While value has fallen out of  favour over different periods, 2018 stood out for the abnormal and overblown way value stocks were punished when global equities stumbled.  An analysis of the market showed that 2018 was the worst year for the relative performance of stocks, with the lowest price/earnings ratios since the dot-com bubble burst around 20 years ago. Alliance Trust Savings sold to Interactive Investor for £40m In the US, the cheapest fifth of stocks by P/E was down 15.2% for the year; 10.8 percentage points worse than the S&P 500, which fell  by 4.4%, according to FactSet ...