GLOBAL MARKETS: Value investing’s grim run
Value’s grim run
Value investing is suffering its worst run in at least two centuries as the pandemic compounds a decade of struggles for the strategy of buying cheap stocks in unfashionable industries. Research by fund manager Mikhail Samonov suggests the performance of value stocks — like banks — is the worst since 1826, the year former US presidents Thomas Jefferson and John Adams died.
Wind in their sails
President Xi Jinping’s vow last month that China will be carbon neutral by 2060 and expectations that the US election could reshape that country’s energy sector if Joe Biden wins have fuelled a rally in global solar and wind producers.
Shares in the S&P global clean energy index are up 71% since the start of the year and by 22% since Xi’s speech on September 22. Hong Kong shares of Chinese wind turbine maker Xinjiang Goldwind — the world’s third-largest such group — have surged 46% since the speech.
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