Value Trade Crumbles on Wall Street, Putting Quant Funds at Risk
- Cheap shares have lagged since bond yields peaked in June
- Quant research disputes link between interest rates and value
A trader works on the floor of the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
If Wall Street is right, the big revival in value investing in the post-lockdown era is in danger of falling apart all thanks to the resurgent bond market.
Strategists from JPMorgan Chase & Co. to Wells Fargo & Co. warn that the best days may now be over for cheap-looking stocks as investors dump the likes of oil producers and banks on the conviction that inflation has peaked.