Value Stocks And the Macro Cycle: Understanding the Value Cycle
5 Pages Posted: 22 Sep 2012
Date Written: August 1, 2012
Value investing is a common investment strategy, but like all other strategies it has suffered during certain periods, such as the tech rally in the late nineties. This paper examines the value cycle globally and considers the impact of possible drivers, including those involving the overall stock market and macroeconomic factors. The value cycle was found to be closely linked with the level of risk aversion and, among macroeconomic variables, the interest rate cycle.
Keywords: Value Investing, Investment Strategy, Value Cycle Globally, Stocks, Macro Cycle, Asia Pacific, Macroeconomic factors
JEL Classification: G10, G11
Suggested Citation: Suggested Citation