- Value stocks are underperforming growth stocks due to the popularity of artificial intelligence.
- A Russell 1000 subindex tracking energy and bank stocks is lagging behind a counterpart for growth stocks by the most in over 20 years.
- Financial turmoil and uncertainty about the economy's future are causing cheap-looking firms to take lumps.
- The tech-heavy Nasdaq 100 has jumped 33% this year, while the S&P 500 has advanced 12%.
- Investors who focus on the value style have withdrawn over $15 billion from exchange-traded funds in the past three months.
How the Value Trade Has Been Smoked by the AI Frenzy
As fast as it went up for value managers, it’s coming down. The culprit is the all-consuming craze for artificial intelligence.
Lu Wang
