Hunting Value Stocks After the Long Rally

With the Standard & Poor's index of 500 stocks up nearly 35% from its Mar. 9 low of 676.53, this can be a confusing time for value investors. The economic signals are mixed, with tentative signs of life in the housing market offset by weak readings on manufacturing. Despite the buzz about the "green shoots" of recovery, a double-dip recession remains possible. Amid worries about growth, there's also a raging debate about whether deflation will take hold—or inflation will begin to boil.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.