According to this story in the FT (paywall, sorry) value investing, as opposed to growth investing, could be primed for a comeback right now, which might be reassuring for some of the people who’re nervous about the which price-earnings ratios etc. at the moment.
By one commonly-used yardstick, value stocks look cheap. The trailing price-to-earnings ratio of the 120 companies in the S&P 500 Pure Value index — which sifts value stocks by assets, earnings and sales — has dropped one third since October to 10.8 times. This compares with a multiple of 18 times for the broader S&P 500 and 25 times for the equivalent index of growth stocks.