US equities tipped to lag in coming decade 10 December 2020
The US market is expected to underperform its international peers during the next 10 years, Vanguard economists have said, as value stocks are projected to overtake growth.
Qian Wang, chief economist, Asia-Pacific and global head of Vanguard Capital Markets Model noted for the next decade, she is expecting higher return from value stocks over growth, despite the contrary being true as of late.
Research from Vanguard has shown that the underperformance of value factor can be justified by downward trending long-term inflation levels and the lack of acceleration in earnings growth during the last 10 years.