NEW YORK (Reuters) – As the U.S. economy begins to emerge from the sharp slowdown during the coronavirus pandemic, some fund managers have been drawn to value stocks, a sector that underperformed during the recent rally.
FILE PHOTO: Pedestrians walk past the New York Stock Exchange as the building opens for the first time since March while the outbreak of the coronavirus disease (COVID19) continues in the Manhattan borough of New York, U.S., May 26, 2020. REUTERS/Lucas Jackson
Value stocks, which typically sport lower price-to-earnings valuations, tended to underperform growth stocks during the bull market that ran for more than a decade and ended this year.
That pattern has recently reasserted itself: The S&P 500 Value index was up just 4.5% over the last month compared to a 5% gain in the S&P 500 Growth index.
Yet better-than-expected readings on U.S. employment and other indicators have money managers thinking about lightening up on the stocks driving the rally in favor of sectors such as f