The Case for Increasing Value Stocks in Your Portfolio

January 31, 2025 - 06:55

In a recent discussion, Sébastien Page, the head of global multi-asset and chief investment officer at T. Rowe Price, emphasized the importance of incorporating more value stocks into investment portfolios. Page highlighted that despite the potential risks posed by tariffs, investors should be cautious about overreacting to market news, as market movements can be swift and unpredictable.

He pointed out that value stocks have demonstrated a tendency to perform defensively, particularly during periods of market volatility. In fact, over the last 200 trading days, value stocks have outperformed their growth counterparts during 17 instances when the S&P faced pressure. This trend suggests that value stocks may offer a more stable investment option in uncertain times.

While Page acknowledges the role of growth stocks in a diversified portfolio, he advocates for a strategic tilt towards value stocks over the next six to twelve months, positioning them as a more favorable choice in the current market landscape.