Value is working. Here’s why it can continue.
Value investing is showing a resurgence globally, particularly in Europe and Japan, driven by higher interest rates, stronger commodity markets, and a renewed focus on company valuations and cash flows. While U.S. markets have been dominated by a few large-cap tech companies, the increasing capital intensity of AI and a shift in the macroeconomic environment suggest that value strategies may become more prominent there as well. The article argues that a rebalancing of market leadership is underway, favoring cash-generative companies in real economy sectors.
https://www.troweprice.com/en/ie/financial-intermediary/insights/value-is-working-heres-why-it-can-continue