Most investors want to be value players. The stock market by many measures is overvalued so the desire to buy value stocks or hold the value risk premia is strong, yet the numbers do not support holding this style. At some point this will change, but investors looking for the turn-around will have to stay on the sidelines at least until there is evidence of relative trend improvement.
Analyzing a set of fundamental and macro factors associated with value comes to a clear conclusion that the environment is not right for value. Low inflation, low rates, low (negative) growth, poor fundamentals, poor structural environment, and bad technicals make for a poor value environment.
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