Lessons from history: Does a recession always spell bad news for value stocks?

A look back at the past three major downturns

Since the time of the Global Financial Crisis, value stocks have been sensitive to fears of recession.

Investors are gripped by concerns that an economic downturn could result in further underperformance within a style already hard hit in current conditions.  The depth of underperformance of value stocks in the last recession has left deep scars, but 2007 to 2009 marks just one example of how value stocks perform in a recessionary environment. Is a global recession inevitable? To gain a better understanding of how value stocks fare when trouble strikes, we have looked back at how the style performed in the last three recessions to work out what might happen when the next downturn in...