By Lewis Krauskopf and Svea Herbst-Bayliss
NEW YORK/BOSTON (Reuters) – A sustained shift to value stocks has eluded investors for years. Indeed, a casualty this week was the $10-billion AJO quantitative value fund that announced it was shutting, citing the longest “drought” on record in value.
Some investors and analysts, however, are making a counter-argument, saying the unloved trade could be worth buying as the U.S. election nears and progress continues on a coronavirus vaccine.
“Investors have lost patience with value stocks but the irony is that we could be just weeks away from a turning point,” said Troy Gayeski, partner and co-chief investment officer at SkyBridge Capital.
A possible “Blue Wave” election on Nov 3, in which former Vice President Joe Biden wins the presidency and his Democratic party takes the U.S. Senate, could lead to massive stimulus, while clinical data on COVID-19 vaccines are expected by the end