Last year, the value factor was plagued by the Federal Reserve. Financial services and utilities names were value residents and those sectors have been hampered by speculation regarding when the Fed would raise interest rates or if the central bank can even make that move. When Treasury yields climbed, financials got a lift, but utilities were hampered. The opposite was true when yields fell, but the result was less-than-impressive performances for sector ETFs tracking financials services and utilities stocks.
Well, in this space we forecast the resurgence of the value factor and the relevant exchange traded funds. That resurgence has been on display this year as investors are eschewing growth and momentum for value.
Interestingly, data suggest investors have grown tired of waiting for the value factor's resurgence.
“In fact, there is evidence that some value investors are beginning to capitulate after years of watching growth outperform,” said p>
/www.benzinga.com/trading-ideas/long-ideas/16/03/7731839/potent-value-in-this-large-cap-etf alt=Potent Value In This Large-Cap ETF>Full story available on Benzinga.com
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