NEW YORK (TheStreet) -- Plenty of academic studies show that unloved value stocks have outdone high-priced growth shares over the long term. But value has struggled lately. During the past five years, the Russell 1000 Growth index has returned 4.1% annually, while the Russell 1000 Value lost 1.6%. Value also trails for the past decade.Growth stocks have led partly because financials account for a heavy weighting in the value benchmark. During the financial crisis, banks and insurance companies were crushed, and they still sell at low multiples compared to historical levels.
Why Value Funds Could Lead the Markets
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