Despite the cooling inflation in October and November, the Fed is expected to keep hiking rates well into 2023 as inflation is far away from the Fed’s target level. Such persistent monetary tightening is expected to keep markets under pressure for an extended time. Moreover, benchmark indices have witnessed substantial losses in 2022. The S&P 500 has lost 19.9% year-to-date.
Amid this, value stocks have been gaining traction, and LPL Financial expects value stocks to perform well in 2023. Investors’ interest in value stocks is evident from the iShares S&P 500 Value ETF’s (IVE) 3.1% gains over the past three months. Furthermore, JPMorgan Chase & Co. (JPM) expects value investing to gain more popularity in the coming term.
