Talking Point  

What is the future for value investing?

  • Describe what value investing is
  • Explain why value investing is out of favour
  • Describe some of the factors affecting the prospects of value investing right now
CPD
Approx.30min
Value investing in the current era
Does it have a future?
Enter
keywords

Value investing has been out of fashion for a number of years, with all attention focused on the growth stocks - especially those in the tech sector.

While economic uncertainty is generally a negative for value stocks, when the tide does turn, and growth returns, value tends to outperform growth for a period.

Are we due a comeback? Several high profile value managers have left the arena, indicating that their style is still very much out of fashion, but how will markets respond over the long term, due to the pandemic, especially given the fiscal stimulus governments have engaged with over the past few months?

This report aims to address these questions, and look at the issues facing value investing. It is worth 30 minutes' CPD.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Value stocks are typically popular when the economy is growing and inflation is increasing, true or false?

  2. Why did the traditional rotation out of growth to value not occur?

  3. Why does Stephanie Butcher think there are some conditions are favourable to value making a comeback?

  4. Why do traditional valuation metrics have a problem with assessing tech companies?

  5. According to Mike Coop, what is one reason why growth shares have outperformed value?

  6. James Thomson thinks investors will look less favourably on tech stocks, post-lockdown, true or false?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe what value investing is
  • Explain why value investing is out of favour
  • Describe some of the factors affecting the prospects of value investing right now

I completed this CPD in

To bank your CPD please complete the form below.

Were the stated learning objectives met?

Why weren't they met?

What did you learn from undertaking this CPD exercise?

Why did you undertake this piece of learning?

Any comments about this article or FTAdviser's CPD in general?

Banked!

Congratulations, you have successfully completed and banked this piece of CPD

Already Banked!

You have already banked for this article.

To bank your CPD you must or

Register

One or more questions have been incorrectly answered,
 please review your answers and try again.

Please complete all the above text fields to bank your CPD.

More Investments CPDSee my completed CPDSee all CPD