The tailwinds bringing UK value back in fashion: How vaccines and Brexit create the trade of the decade

Cause for celebration as year pans out?

In mid-January 2016, when emerging markets (EM) value stocks were unusually cheap, we identified this segment of the market as "the trade of the decade".

In the first two years after the low of 21 January 2016, EM earned 80%. The RAFI EM fund - with a deep value tilt - fared even better with a gain of 85%. In late 2020, as Brexit negotiations broke down (again and again) and a more virulent form of Covid-19 emerged in the UK, UK stocks (notably UK value) reached extraordinarily cheap levels. We are comfortable calling these market segments a new trade of the decade. Changes to takeovers and a more restrictive approach to foreign direct investment: What's the impact on UK businesses? The massive economic shock of the Covid-19 pand...