With extended lockdowns across major Chinese cities, the continuing Russia-Ukraine conflict, and high inflation, the stock market has remained in correction territory so far this year. Anticipating the Fed’s forthcoming aggressive interest rate hikes, the markets are expected to remain under pressure. According to Michael Howell, chief executive of CrossBorder Capital, another 20% decline is in the offing.
Amid this environment, many investors prefer value stocks over growth stocks. According to a recent MLIV Pulse survey, 74% of readers have stated that cheap stocks relative to their valuation fundamentals might outperform their growth counterparts. Investors’ interest in value stocks is evident from the Vanguard Value Index Fund ETF’s (VTV) 3.1% returns over the past nine months.
