Blog: Value will be back as fear retains hold

VALUE WILL BE BACK

River & Mercantile's head of UK equities, Hugh Sergeant, explains why the pricing of fear means value investing will return to favour next year.

It has been a difficult time for traditional, value led investors. Attractively priced shares have just been getting cheaper and cheaper, whil expensive shares have kept going up. The reason for this is simple - fear. While big picture uncertainties abound, investors are happy to pay an increasingly higher relative price for security and at the same time to ignore all lowly-valued shares. Our view is if you are willing to take a longer-term view then buying a portfolio of today's value investments will be very rewarding. We all know the short-term future is uncertain; we hear this ...