Value stocks are out of favour in the US. But elsewhere in the world, the value trade has been the winner over growth. Sign up for COTW here: https://lnkd.in/eK7WknUu
Geography matters more than narrative. US growth dominance hides global opportunities—value thrives where markets are less crowded.
Keep in mind As of 2025, the U.S. stock market comprises approximately 50.2% of the global equity market capitalization, valued at about $62.2 trillion. In contrast, the other whole world combined market capitalization for the remaining is 49.8%. This stark contrast underscores the dominance of U.S. equities on the global stage, driven by major technology firms and large-cap companies. However, it's essential to recognize that while the U.S. market leads in size, regional markets may offer distinct investment opportunities, especially as global economic dynamics evolve.
Thanks for an interesting post on global market trends which is likely due to the rest of the world trailing in AI adoption, missing the 'Magnificent 5' effect.
The Mag 7 stocks collectively account for a very large portion of the Russell 1000's total market value. This means their performance has an outsized impact on the index's overall return. So, for this reason only Value stocks are appearing in US, unlike, everywhere, in the World markets, as shown in this post.
Hakyung Kim Weaker US$ one driving factor.
Am I alone in finding the value growth debate strange? If growth stocks grow faster than expectations doesn't that make them good value?
this highlights that value stocks may offer opportunities outside the US while growth dominates at home. Diversification seems key.
Finance & AI Consultant | IFRS / EPM | Banking & Insurance | MSc in Data Science (U.S.) | MSc in Finance & Accounting | Ex-Big4
21hIt’s not that US value is weak — it’s that US growth is artificially heavy. Massive investor rotation into the “Magnificent 7” inflated Growth index weightings and mechanically diluted Value performance in the Russell 1000. In Japan and Europe, where this AI-driven concentration is absent, value stocks better reflect current economic fundamentals — earnings, rates, and margins.