Wells Fargo's equity chief declares the end of a

If the past two years looked tough for value as characterized by Harvey, think about the majority of the postrecession era, when worth investors have mainly been walloped by high-growth stocks.
“These macro tendencies help determine the expense of funds, market risk and ultimately stock multiples especially for Value stocks, that are often debt-heavy and higher danger,” he said in a note to customers.

The shaded regions in the chart below highlight minutes when investors favored worth stocks and reined at the premium that pricey stocks controlled. In Harvey’s perspective, we’re at a different inflection point.

The stocks that emerged at the top of Wells Fargo’s value screen and are ranked”outperform” by its own analysts were Western Digital, L Brands, FedEx, Nielsen Holdings, along with Alliance Data Systems Corp.
His year-end target for its S&P 500 was the smallest among his peers at significant companies until Cantor Fitzgerald churned a weaker prediction. But Harvey wasn’t bearish, per se: He anticipated a double-digit rally in the S&P 500, only in the lower starting point it dove to throughout the fourth quarter.

By a single metric, value stocks have been mired in a bear market for the past two decades.
He has identified some value stocks since being best positioned to profit in the upswing — the stocks can also be rated”overweight” by Wells Fargo.

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