That is a reversal from last year, when value stocks pulled ahead of growth stocks for the first time since 2016. The Russell 3000 Value Index has returned just 2.1% this year through Monday, lagging behind the Russell 3000 Growth Index by 31 percentage points. Value stocks, by contrast, boost profits more slowly and are considered a bargain because they trade at a low multiple of their book value. In recent years, ultralow interest rates encouraged investors to chase higher yields from growth stocks, which consistently outperformed value stocks. With rates remaining high this year, some analysts thought value stocks would continue to outperform growth stocks.

Source: Wall Street Journal November 29, 2023 00:47 UTC