Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
Rally Lifts Value Shares, But Is It Sustainable?
This week, we’re watching value stocks to see if there’s a sustainable rally brewing in financial, energy and materials shares. Led by these sectors, value stocks rallied 60.3% from October 2020 through March 2021, compared to a gain of 21% for the overall market in the same period. Although the rally is reaching the eight-month mark, it is too early to draw any conclusions about where value stocks are headed. Over the last 50 years, the average value rally lasted 62 months. The longest was from December 1980 to August 1988, and the shortest was from February 2016 to January 2017.
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