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BofA urges investors to stick with overlooked value stocks
BofA linked the appeal of value stocks to a higher interest rate and inflation environment, where it says the strategy has tended to work.
Bank of America said investors are still overlooking value stocks, and it urged investors to maintain exposure to the style. According to MarketWatch, BofA argued that value stocks have been particularly well suited to the current market regime of higher interest rates and inflation.
The firm’s view, as summarized by MarketWatch, is that value opportunities remain under the radar even as investor attention focuses elsewhere.