Cheap stocks regain allure as investors embrace riskier bets

London

INVESTORS in the US and Europe are warming again to a portion of the stock market that they have shunned since the financial crisis.

Value shares, those trading at lower multiples to earnings and asset value, have rallied three times as much as growth stocks in the US this year, heading for their biggest outperformance in a decade. Cheap companies are getting expensive: the group's valuation is the highest since 2009 versus growth, data compiled by Bloomberg show. In Europe, value shares have become the costliest since May.