The stock market has been experiencing a difficult phase due to investors’ concerns about the multi-decade high inflation, the consequences of the Ukraine-Russia war, and the possibility of aggressive interest rate increases later this year. However, the CBOE Volatility Index (VIX) has declined significantly since its peak in the second week of this month, indicating an easing of uncertainty in the market.
The market’s volatility has led to many quality stocks to now trade at reasonable valuations. And since value stocks typically perform well in high-inflation periods, it could be an opportune time to invest in quality stocks that currently look undervalued. Investors’ interest in value stocks is evident in the SPDR Portfolio S&P 500 Value ETF’s (SPYV) 3.7% returns over the past month.
