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US investors seek refuge in value funds


Published on 2025-03-12 21:41:27 - Reuters
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  • As U.S. stock prices get hammered on worries that President Donald Trump's trade and other policies could slow the economy, investors are moving cash to value funds which seem less likely to suffer in downturns than growth stocks.

The article from MSN discusses how U.S. investors are increasingly turning to value funds as a refuge amid economic uncertainties. These funds focus on stocks that are considered undervalued based on their fundamentals like earnings, dividends, and sales, which are believed to offer better long-term returns compared to growth stocks, especially in volatile markets. The shift comes as investors seek stability and potential for recovery in sectors that have been overlooked during the tech-driven market surge. Value investing has seen a resurgence due to factors like rising interest rates, inflation concerns, and fears of an economic slowdown, prompting a move away from high-flying tech stocks towards more traditional, value-oriented investments. This trend is also supported by historical data suggesting that value stocks tend to outperform growth stocks over extended periods, particularly after periods of significant growth stock outperformance.

Read the Full Reuters Article at:
[ https://www.msn.com/en-ca/money/topstories/us-investors-seek-refuge-in-value-funds/ar-AA1ALp6X ]