8 BARRON’S September 9, 2019
stretching back a decade.
true value investors anymore,” says Steve
dred Capital Advisors in Norwalk, Conn.
is there aren’t as many value advocates.”
Many value investors have left the busi-
ness, seen their asset bases wither, or
stretched the definition of value by buying
stockslike Netflix (NFLX)or Amazon.com
tumbled more than 40% in the ensuing 2½
years. But some value managers showed
valuation of value stocks.
“Our portfolio is littered with single-
digit P/E stocks and some have mid- to
ticksoff LyondellBasellIndustries (LYB),
Goodyear Tire & Rubber (GT), CBS
(CBS), and Delta Air Lines (DAL). Both
Investors can also play a revival in de-
current fiscal year ending this month and
founded and headed by Rich Pzena, is a
small-cap play on a value-investing revival.
Its shares, at about $8, trade for about 12
- (There are no published estimates for
rienced net inflows in the past year.
Up & Down Wall Street continued
pean economies have stagnated, interest
rates have plunged to zero—or lower—and
S&P 500 in the past five and 10 years.
“What I meant was that Europe would
remain a great place to visit, eat, and ab-
place to invest,” Wien said this past week.
The issue now is whether European
annually in the past five years, nine per-
centage points behind the S&P 500.
the lack of a dynamic tech sector and a
cally sensitive stocks like autos.
bond yields are low or negative, with the
German 10-year Bund at -0.6%.
The stock-bond yield gap in Europe is
about four percentage points, against less
earnings, a discount to the S&P 500 at 18
Among European stocks, Royal Dutch
Shell (RDSB) and BP (BP) yield over 6%.
Top bank HSBC Holdings (HSBC) yields
5.4% and UBS (UBS), 6%; Daimler
(DDAIF)and BMW (BMW.Germany)yield
Value stocks started to stir last week,
besting their growth counterparts and
cheering embattled value investors after a
long, brutal period of underperformance
Country 10-Year Govt. Bond Yield Stock-Market Dividend
U.S. 1.56% 1.92%
Germany -0.60 3.
U.K. 0.59 5.
Region ETF / Ticker 5-Yr Annualized Return
U.S. SPDR S&P 500 / SPY 10.3%
Europe Vanguard FTSE Europe / VGK 1.
European dividends exceed bond yields as stock markets lag.
Data as of 9/5 Source: Bloomberg
Pay Nearly Half
the Industry Avg
1 (888) 493-
Beyond Ordinary Income Strategies
*Expense ratio was 47% lower than the industry average net
expense ratio as of 7/1/
Source: ETF.com (category: ‘Fixed Income: U.S. -
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