As the value factor is mired in one of its worst drawdowns in history, we analyze its underperformance and explain why we think it is cyclical, not structural.
The COVID-19 outbreak has pushed the global economy into recession and equities likely have further to fall. We are overweight cash and duration and modestly underweight equity and credit. We expect to stay nimble in our relative value positions.
Markets, economy, stocks, growth, global, fixed income, international, asset classes
The US recovery is now the longest on record. Nobody knows exactly how much longer this expansion will last.