When Value Strikes Back
Dimensional Co-CEO and Chief Investment Officer, Gerard O'Reilly, offers an update on the performance of value stocks relative to growth stocks across the global markets, addressing the theory and data supporting a positive value premium over longer periods of time and recent premiums in the context of last year's (2020) market downturn.
Growth stock: A stock trading at a high price relative to a measure of fundamental value such as book equity.
Premium: Return difference between two groups of stocks.
Value stock: A stock trading at a low price relative to a measure of fundamental value such as book equity.