Garraway's Schembri: There's value somewhere in value

Avoiding the usual traps

Much ink has been spilt on the so-called demise of value investing. Despite overwhelming empirical evidence demonstrating otherwise, many minds are set on the misconception that stock markets are now being driven by the Federal Reserve.

Market consensus seems to be that fundamentals no longer matter; value investing is dead, and growth investing is the flavour of the month. What do we think of value investing? For many investors, value investing means investing in companies which are trading at low multiples. The infamous price to earnings ratio is one such example, others include the price to book ratio and the price to sales ratio. By buying companies which are lowly rated by the market, many self-proclaimed value investors expect to outperform. Schroders' Kirrage: Is value investing really dead? Yet, by it...