In his latest Q1 2021 Market Commentary, Bill Nygren discusses value’s recent outperformance over growth in two consecutive quarters. Here’s an excerpt from the commentary:
Following a painful four years for value investors, we’ve finally had two consecutive quarters where value has outperformed growth, the first time in more than four years. In my September commentary, I wrote about the stock market having seemingly bifurcated into two markets: one including many tech and other rapid growth stocks that had become very expensive relative to historic norms and one with more traditional businesses that had not.
The two-quarter outperformance of value has done very little to change that. Low P/E stocks remain priced at historically large discounts to high-growth stocks. Though we certainly don’t expect the market or our Funds to reproduce the returns of the past year, we remain excited about the prospects for our portfolios. We expect the market’s two-tiered valuation gap to continue to narrow, and we believe our Funds are positioned to benefit.
You can read the entire commentary here:
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